Walgreen (NYSE:WAG) Shares Soar as it Beats Estimates

Shares of Walgreen (NYSE:WAG) are soaring today at the Drugstore chain retailer reported profits which exceeded analysts' expectations.

President and Chief Executive Greg Wasson said, “Our performance was driven by our continued focus on gross profit margins, cost control and the strategic slowing of our new store openings. As a result of improved merchandising, including promotions and pricing, we saw significant increases in gross profit margins in the front end.”

Net income for the latest quarter increased to $580 million, or 62 cents a share, up from the $489 million, or 49 cents a share in the same quarter last year. Sales for the quarter rose to $17.3 billion, with same-store sales rising 0.8 percent.

Analysts had been looking for earnings of 54 cents a share, as the company was able to successfully widen margins.

Walgreen was trading at $39.51, up $2.68, or 7.28 percent, as of 12:54 PM EST.