Can Rite Aid Meet These Numbers?

Seth Jayson, The Motley Fool
Updated

Rite Aid (NYS: RAD) is expected to report Q1 earnings on June 20. Here's what Wall Street wants to see:

The 10-second takeaway
 Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Rite Aid's revenues will drop -2.7% and EPS will turn positive

The average estimate for revenue is $6.29 billion. On the bottom line, the average EPS estimate is $0.09.


Revenue details
 Last quarter, Rite Aid reported revenue of $6.46 billion. GAAP reported sales were 9.7% lower than the prior-year quarter's $7.15 billion.

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

EPS details
 Last quarter, non-GAAP EPS came in at $0.13. GAAP EPS were $0.12 for Q4 against -$0.19 per share for the prior-year quarter.

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

Recent performance
 For the preceding quarter, gross margin was 31.7%, 680 basis points better than the prior-year quarter. Operating margin was 5.7%, 540 basis points better than the prior-year quarter. Net margin was 1.9%, 420 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $25.24 billion. The average EPS estimate is $0.20.

Investor sentiment
 The stock has a two-star rating (out of five) at Motley Fool CAPS, with 875 members out of 1,047 rating the stock outperform, and 172 members rating it underperform. Among 166 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 125 give Rite Aid a green thumbs-up, and 41 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Rite Aid is outperform, with an average price target of $1.73.

Is Rite Aid the right retailer for your portfolio? Learn how to maximize your investment income and "Secure Your Future With 9 Rock-Solid Dividend Stocks," including one above-average retailing powerhouse. Click here for instant access to this free report.

The article Can Rite Aid Meet These Numbers? 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. The Motley Fool has no position in any of the stocks mentioned. 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.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Advertisement