Earnings Preview: Rite Aid Corporation

Jun.12.12 | About: Rite Aid (RAD)

Company Profile

Rite Aid Corporation (NYSE:RAD), through its subsidiaries, operates retail drugstores in the United States. The company's drugstores primarily offer pharmacy services.

Rite Aid is scheduled to report its first quarter earnings results on June 21, 2012, before market open.

Technical Overview

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Rite Aid has a market cap of $1.11 billion and it is currently trading around $1.23 with a 52 week range of $0.85 to $2.12. The stock has -2.38% price performance for the year 2012. The following table provides the key financial ratios for Rite Aid:

Key Ratio

Value

Current Ratio

1.75

Profit Margin

-1.41%

Return On Assets (ROA)

-4.94%

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Recent News and Analyst Ratings

  • On June 8, 2012, UBS reiterated a neutral rating on Rite Aid and reduced the price target from $1.80 to $1.35.
  • On June 7, 2012, Rite Aid reported 1.1% same store sales increase for the month of May 2012. Same store sales for the 13-week period ended June 2, 2012 increased 2.5% over the prior-year period.
  • On June 6, 2012, Rite Aid announced the partnership with The Skin Cancer Foundation to Encourage Safe Summer Skin Care.
  • On May 15, 2012, Rite Aid announced that it has closed its previously announced offering of an additional $421.0 million aggregate principal amount of 9.25% Senior Notes due 2020.
  • On May 10, 2012, Rite Aid launched a comprehensive seven-week campaign to engage beauty shoppers around one of the hottest recent fashion trends - using a rainbow of nail polish shades to add fashionable flair or even create tiny works of expressionistic art.

Analyst Guidance and Earnings History

The first quarter revenues are expected to be $6.44 billion when compared to $6.39 billion for the same quarter last year. Earnings per share for the first quarter are expected to be loss of 3 cents a share, up from loss of 7 cents a share in the year-ago period.

The average price target from analyst for Rite Aid is $1.88 with average rating is hold.

Out of the last 4 quarters, Rite Aid has met or exceeded the EPS estimates 3 times. The following chart shows the Analyst estimates history and the actual EPS results:

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The following chart shows the annual summary of Sales and Net income for Rite Aid:

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Sources: Some of the data is taken from Google Finance, Yahoo Finance, Nasdaq, Finviz and investor sites.

Disclaimer: I am not a registered investment advisor and do not provide specific investment advice. The information contained herein is for informational purposes only. Nothing in this article should be taken as a solicitation to purchase or sell securities. Before buying or selling any stock you should do your own research and reach your own conclusion. It is up to investors to make the correct decision after necessary research.

Additional Disclosure: I change my positions very frequently and may initiate either long or short positions in the above mentioned stocks at any time.

Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in RAD over the next 72 hours.