Somethings to remember: filling prescriptions is a very profitable business. this is a low overhead and easy to do business. location is key.
Walgreens has these strengths and regardless of management initiatives, WAG will continue to make $ and fill 15% of US RXs. Although mail may be cost efficient and therefore more profitable, it will not remove retail from health care system. I dont expect a Netflix/ Blockbuster scenario. WAG and retail pharmacy will continue to make money albeit in the coming years it will take more RXs to make the same amount money.
The key for this quarter is not EPS but guidance and ESRX clarity. I expect a beat on quarter numbers and lower revenue/ profit guidance next year on ESRX. I don't expect much more info than that but lets see.