3/19/2010- Morgan Stanley analysts are reducing their Q2 EPS estimates for Walgreens (NYSE:WAG) to $0.70, down from $0.72, to reflect weak Rx trends.
Analysts Mark Wiltamuth, Joseph Parkhill and Justin Van Vleck said, "While soft front-end sales results around the Christmas holiday were likely more than offset by less post-holiday closeout discounting, we believe the weaker Rx trends could still weigh on results. As flu season has completely collapsed, we expect weak Rx trends to persist for the near-term, and we believe lapping last year's swine flu could also pose a challenge in quarters ahead. We reiterate our Equal-weight rating on Walgreens shares."