The 10-second takeaway
For the quarter ended March 2 (Q4), Rite Aid met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank. GAAP earnings per share expanded.
Margins increased across the board.
Rite Aid notched revenue of $6.46 billion. The five analysts polled by S&P Capital IQ wanted to see sales of $6.41 billion on the same basis. GAAP reported sales were 9.7% lower than the prior-year quarter's $7.15 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.13. The four earnings estimates compiled by S&P Capital IQ anticipated $0.01 per share. GAAP EPS were $0.13 for Q4 against -$0.19 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 31.7%, 680 basis points better than the prior-year quarter. Operating margin was 5.7%, 540 basis points better than the prior-year quarter. Net margin was 1.9%, 420 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $6.31 billion. On the bottom line, the average EPS estimate is $0.03.
Next year's average estimate for revenue is $25.19 billion. The average EPS estimate is $0.02.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Rite Aid is hold, with an average price target of $1.73.
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