The 10-second takeaway
- For the quarter ended Nov. 26 (Q3), Rite Aid met on revenues and met on EPS.
- Gross margins were steady. Operating margins expanded. Net margins improved.
Rite Aid reported revenue of $6.3 billion. The five analysts polled by S&P Capital IQ looked for revenue of $6.3 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at -$0.05. The two earnings estimates compiled by S&P Capital IQ predicted -$0.13 per share on the same basis. GAAP EPS were -$0.06 for Q3 compared to -$0.09 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 26.5%, about the same as the prior-year quarter. Operating margin was 1.4%, 40 basis points better than the prior-year quarter. Net margin was -0.8%, 50 basis points better than the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods.
What does the future hold?
Next quarter's average estimate for revenue is $6.9 billion. On the bottom line, the average EPS estimate is for -$0.14 (There are five revenue estimates and three EPS estimates.)
For the full year ending 2012, the average estimate for revenue is $25.8 billion. The average EPS estimate is -$0.44. (There are eight revenue estimates and six EPS estimates.)
The stock rates one stars at Motley Fool CAPS, with 808 members out of 958 rating the stock outperform, and 150 members rating it underperform. Among 130 CAPS All-Star picks, 98 give Rite Aid the green thumbs-up, and 32 give it the 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 $1.43.
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