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Walgreen Misses, Lennar Beats, Carnival Delays Release of Report

Dan Berman
Hot Stock Minute
Walgreen Misses, Lennar Beats, Carnival Delays Release of Report

Drug store giant Walgreen (WAG) which missed estimates when it reported earnings at 7:30 this morning and is now down 6%. The company posted earnings of 85-cents a share. That's a record, and up from 72-cents a year ago, but it missed the consensus of 91-cents. Revenue was also a hair shy of expectations at $18.3 billion. Walgreen is pointing to robust sales in its pharmacy department and says it's maintaining strong margins. But Cantor downgraded the stock to hold from buy yesterday keeping their price target at $49. The stock closed at about $48 a share yesterday, up 26% this year. Even with the pullback in the larger market, the stock is up 66% over the past year.

Next is home-builder Lennar (LEN) which is up more than 5% this morning after reporting earnings. The company easily beat estimates posting profits of 43-cents a share when estimates were for 33-cents. Revenue was also higher than the consensus. Lennar is clearly benefitting from the housing rebound. Sales jumped 53% from a year ago as the company sold more homes and at higher prices. Shares are down 18% over the past month, and 12% year-to-date. But they enjoyed quite a run-up towards the end of 2012 and are actually up 32% over the past year.

Carnival (CCL) was supposed to report before the opening bell but has now delayed its release until 10am. The cruise company is having trouble righting its ship and is expected to post earnings of just 6-cents a share down from 20-cents a year ago. Carnival has been reeling from a series of disasters and mishaps at sea. As a result it has been offering discounts to get people on board its ships. Shares of Carnival are down 11% year-to-date. Despite all the choppiness on their chart, they're basically unchanged over the past 52-weeks.

Finally, Smith and Wesson (SWHC) reports after the closing bell. The gun-maker recently upped its earnings outlook to 44-cents a share. The earlier forecast had been for 40-cents. Both are a large jump from the 27-cents posted a year ago. Sales are expected to be up nearly 40% on increasing demand.