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Can Rite Aid Beat These Numbers?

By Seth Jayson - Updated Apr 10, 2017 at 1:55PM

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Checking expectations

Rite Aid (NYSE: RAD) is expected to report Q4 earnings on April 11. 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 wane -10.1% and EPS will remain in the red.

The average estimate for revenue is $6.42 billion. On the bottom line, the average EPS estimate is -$0.01.

Revenue details
Last quarter, Rite Aid reported revenue of $6.24 billion. GAAP reported sales were 1.2% lower than the prior-year quarter's $6.31 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 $0.07. GAAP EPS were $0.07 for Q3 versus -$0.06 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 29.0%, 250 basis points better than the prior-year quarter. Operating margin was 3.2%, 180 basis points better than the prior-year quarter. Net margin was 1.0%, 180 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $25.32 billion. The average EPS estimate is $0.00.

Investor sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 844 members out of 1,013 rating the stock outperform, and 169 members rating it underperform. Among 155 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 113 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 hold, with an average price target of $1.70.

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Rite Aid Corporation Stock Quote
Rite Aid Corporation
$5.65 (1.07%) $0.06

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