Rite Aid Beats Up on Analysts Yet Again

Seth Jayson, The Motley Fool
Updated

Rite Aid (NYS: RAD) reported earnings on June 21. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 2 (Q1), Rite Aid met expectations on revenues and exceeded expectations on earnings per share.

Compared to the prior-year quarter, revenue improved slightly and GAAP loss per share dropped.


Gross margins increased, operating margins dropped, net margins increased.

Revenue details
Rite Aid booked revenue of $6.47 billion. The five analysts polled by S&P Capital IQ expected revenue of $6.46 billion on the same basis. GAAP reported sales were 1.2% higher than the prior-year quarter's $6.39 billion.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at -$0.03. The two earnings estimates compiled by S&P Capital IQ anticipated -$0.05 per share. GAAP EPS were -$0.03 for Q1 compared to -$0.07 per share for the prior-year quarter.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 27.0%, 50 basis points better than the prior-year quarter. Operating margin was 0.9%, 70 basis points worse than the prior-year quarter. Net margin was -0.4%, 60 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $6.24 billion. On the bottom line, the average EPS estimate is -$0.08.

Next year's average estimate for revenue is $25.49 billion. The average EPS estimate is -$0.15.

Investor sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 811 members out of 976 rating the stock outperform, and 165 members rating it underperform. Among 145 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 106 give Rite Aid a green thumbs-up, and 39 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Rite Aid is hold, with an average price target of $1.99.

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The article Rite Aid Beats Up on Analysts Yet Again originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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