Rite Aid (NYSE: RAD) is expected to report Q3 earnings on Dec. 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 shrink -0.5% and EPS will remain in the red.
The average estimate for revenue is $6.28 billion. On the bottom line, the average EPS estimate is -$0.02.
Revenue details
Last quarter, Rite Aid tallied revenue of $6.23 billion. GAAP reported sales were 0.6% lower than the prior-year quarter's $6.27 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, EPS came in at -$0.05. GAAP EPS were -$0.05 for Q2 against -$0.11 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 27.5%, 120 basis points better than the prior-year quarter. Operating margin was 1.5%, 80 basis points better than the prior-year quarter. Net margin was -0.6%, 90 basis points better than the prior-year quarter.
Looking ahead
The full year's average estimate for revenue is $25.35 billion. The average EPS estimate is -$0.14.
Investor sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 814 members out of 979 rating the stock outperform, and 165 members rating it underperform. Among 148 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 105 give Rite Aid a green thumbs-up, and 43 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 $1.66.
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