The 10-second takeaway
For the quarter ended March 3 (Q4), Rite Aid met expectations on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP loss per share dropped.
Gross margins shrank, operating margins dropped, net margins expanded.
Rite Aid booked revenue of $7.15 billion. The six analysts polled by S&P Capital IQ hoped for a top line of $7.13 billion on the same basis. GAAP reported sales were 11% higher than the prior-year quarter's $6.46 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at -$0.10. The five earnings estimates compiled by S&P Capital IQ predicted -$0.17 per share on the same basis. GAAP EPS were -$0.18 for Q4 against -$0.24 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 24.9%, 140 basis points worse than the prior-year quarter. Operating margin was 0.3%, 80 basis points worse than the prior-year quarter. Net margin was -2.3%, 90 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $6.58 billion. On the bottom line, the average EPS estimate is -$0.05.
Next year's average estimate for revenue is $25.78 billion. The average EPS estimate is -$0.29.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 813 members out of 979 rating the stock outperform, and 167 members rating it underperform. Among 151 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 111 give Rite Aid a green thumbs-up, and 40 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 $1.58.
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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. 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.