Rite Aid Hits Estimates in Solid Quarter

Rite Aid (NYSE: RAD  ) reported earnings on June 20. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 1 (Q1), Rite Aid met expectations on revenues and met expectations on earnings per share.

Compared to the prior-year quarter, revenue contracted. GAAP earnings per share increased.

Margins expanded across the board.

Revenue details
Rite Aid booked revenue of $6.26 billion. The four analysts polled by S&P Capital IQ predicted a top line of $6.29 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.

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 $0.09. The four earnings estimates compiled by S&P Capital IQ anticipated $0.09 per share. GAAP EPS were $0.09 for Q1 against -$0.03 per share for the prior-year quarter.

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 28.9%, 190 basis points better than the prior-year quarter. Operating margin was 3.4%, 250 basis points better than the prior-year quarter. Net margin was 1.4%, 180 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $6.16 billion. On the bottom line, the average EPS estimate is -$0.03.

Next year's average estimate for revenue is $25.25 billion. The average EPS estimate is $0.17.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 878 members out of 1,052 rating the stock outperform, and 174 members rating it underperform. Among 166 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 124 give Rite Aid a green thumbs-up, and 42 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 $2.53.

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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 of Motley 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.


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Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On June 24, 2013, at 6:33 AM, bestwaytoriches wrote:

    Seth,

    The star rating system is so dated. If any investor is making there trade or investments on the dated system there sure to lose. As for RAD. 5 days before the earnings RAD told the street to raise there guidance form .04 and the street expected .08 and RAD delivered .09 a beat. RAD price target is July 19 2013 $ 3.40 and Dec 2013 $ 5.50. The large volume and money flow and Point and figure $ 7 price target and the large buying institutions are taking place are sure to prove you wrong. The only thing could be your short and trying to hold the stock down with your dated and weak passive bad mouthing.

    RAD is a great Co and a ture turn around story

    aggressively fixing there balance sheet.

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