wag will burn tomorrow; all the expectations based on last year performance and several things changed over this time. Zero winter and low allergy season will cut their revenues and express scripts contract and I heard medicare hasn't been paying well this quarter. So look for at least 15% drop tomorrow.
Only growth is coming from new store openings; they are spending a lot on marketing and I see more employees in Walgreens these days compared to Walmart. These all are expenses and will affect margins. They are competing with dollar stores in merchandising where margins are null.
I own puts, but little matters about this quarters performance. This all comes down to the C.C. and guidance.
This is likely going 10% move, either way. They sign a contract with ESRX- its 37 to 38. No contract and poor guidance its 30-31. I think you are most likely right that it is going to drop, but i also have some 37 calls just in case they pull a rabbit out of their hats.