The 10-second takeaway
For the quarter ended June 1 (Q1), Rite Aid met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted. GAAP earnings per share increased.
Margins expanded across the board.
Rite Aid booked revenue of $6.26 billion. The four analysts polled by S&P Capital IQ predicted a top line of $6.29 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $0.09. The four earnings estimates compiled by S&P Capital IQ anticipated $0.09 per share. GAAP EPS were $0.09 for Q1 against -$0.03 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 28.9%, 190 basis points better than the prior-year quarter. Operating margin was 3.4%, 250 basis points better than the prior-year quarter. Net margin was 1.4%, 180 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $6.16 billion. On the bottom line, the average EPS estimate is -$0.03.
Next year's average estimate for revenue is $25.25 billion. The average EPS estimate is $0.17.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 878 members out of 1,052 rating the stock outperform, and 174 members rating it underperform. Among 166 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 124 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 outperform, with an average price target of $2.53.
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