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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 provides prescription drugs and front-end products, which include over-the-counter medications, health and beauty aids, personal care items, cosmetics, household items, beverages, convenience foods, greeting cards, seasonal merchandise, and various other everyday and convenience products, as well as photo processing products.

It is scheduled to report its Q1 2013 results on June 21, 2012, before the market opens.

Technical Overview


Key Metrics

  • Market Cap: 1.10B
  • 52-week trading range: 0.85 - 2.12
  • Price/Sales: 0.04
  • PEG Ratio: -0.76
  • Total Debt: 6.35B
  • Annual dividend yield: N/A
  • Return on Equity: N/A
  • Return on Assets: 2.19%

Recent EPS Actuals vs. Estimates

The company has failed to meet analysts' estimates in the last quarters. In the last quarter, it reported ($0.18) loss per share, failing to meet analyst estimates of ($0.14) loss.

The consensus EPS is ($0.03) loss based on 6 analysts' estimates, up from a ($0.07) loss a year ago. Revenue estimates are $6.44B, up from $6.39B a year ago. The median target price by analysts for the stock is $1.95.

Average recommendation: Hold

Source: Marketwatch

Analyst Upgrades and Downgrades

  • On April 9, 2012, UBS reiterated its Neutral rating for the company.

Latest Developments

  • On June 13, 2012, Reuters reported that CVS Caremark Corporation and Rite Aid Corporation filed an antitrust lawsuit accusing Pfizer Inc and Teva Pharmaceutical Industries Ltd of conspiring to keep generic versions of antidepressant Effexor XR off store shelves.
  • On May 25, 2012, Rite Aid Corporation announced that its Board of Directors has elected John T. Standley, who is currently President, Chief Executive Officer (NYSE:CEO) and a member of the Company's Board of Directors, to the additional position of Chairman of the Board, effective June 21, 2012 at the Company's annual stockholder meeting.
  • On May 15, 2012, Rite Aid Corporation announced that it had closed its previously announced offering of an additional $421.0 million aggregate principal amount of 9.25% Senior Notes due 2020 (the "New Notes").
  • On May 4, 2012, Rite Aid Corporation announced the pricing of an offering of an additional $421.0 million aggregate principal amount of 9.25% senior notes due 2020 (the "Notes") at a price of 101.25%, which will result in total proceeds of approximately $426.3 million.
  • On April 12, 2012, Rite Aid Corporation announced that for fiscal 2013, it expects sales to be between $25.4 billion and $25.8 billion with same stores sales expected to range from flat to an increase of 1.5% over fiscal 2012, adjusted EBITDA is expected to be between $925 million and $1.025 billion.

Competitors

Rite Aid Corp. operates in Drug Stores industry. The company could be compared to GNC Holdings Inc. (NYSE:GNC), Sally Beauty Holdings Inc. (NYSE:SBH), and Walgreen Co. (NYSE:WAG). Below is the table comparison of the most important ratios between these companies and the industry:

Below is the chart comparison with the stock price changes as a percentage for the selected companies and S&P 500 index for the last one-year period:

Click to enlarge

RAD Chart

RAD data by YCharts

Competitors' Latest Development

  • On June 4, 2012, Walgreens announced an extended, multi-year agreement in which Walgreens will build on its strategic partnership with OptumRx, one of the pharmacy benefit managers in the United States.
  • On May 30, 2012, Walgreen Co's Take Care Health Systems and The Valley Health System announced a new relationship that will facilitate greater clinical coordination and enhance access to convenient and affordable health care options available at Take Care Clinics in Southern Nevada.
  • On May 15, 2012, Sally Holdings LLC (the company), a wholly-owned subsidiary of Sally Beauty Holdings Inc announced the pricing of its previously announced public offering of $700 million aggregate principal amount of 5.75% Senior Notes due 2022 (the Senior Notes).
  • On May 7, 2012, Sally Beauty Holdings Inc announced the underwritten public offering of 15,000,000 shares of its common stock held by investment funds associated with Clayton, Dubilier & Rice, LLC (the CDR Investors) pursuant to the company's shelf registration statement filed with the Securities and Exchange Commission.
  • On May 7, 2012, Walgreen Co announced that it has completed its acquisition of certain assets of BioScrip, Inc.'s community specialty pharmacies and centralized specialty and mail service pharmacy businesses.
  • On April 25, 2012, GNC Holdings Inc announced that the company's Board of Directors has authorized and declared a cash dividend of $0.11 per share of its common stock for the second quarter of 2012, payable on or about June 29, 2012 to stockholders of record at the close of business on June 15, 2012.
  • On April 25, 2012, GNC Holdings Inc raised fiscal 2012 guidance and expects consolidated revenue of approximately $2.37 billion, a 14.5% increase over fiscal 2011 consolidated revenue of $2.07 billion.
  • On February 16, 2012, GNC Holdings Inc announced that for fiscal 2012, it expects consolidated revenue of approximately $2.28 billion, this is based on achieving a mid-single digit domestic retail same store sales increase for fiscal 2012, excluding the impact of GNC.com which in 2011 contributed approximately 140 basis points to the total reported same store sales increase of 10.1%.
  • On February 16, 2012, GNC Holdings Inc announced that it has authorized and declared a cash dividend of $0.11 per share of its common stock for the first quarter of 2012, payable on or about March 30, 2012 to stockholders of record at the close of business on March 15, 2012.
  • On February 16, 2012, Walgreen Co and Greystone Healthcare Management announced that they have launched a collaborative therapy management pilot program at the Lady Lake Specialty Center in Lady Lake, Fla., aimed at enhancing medication adherence and reducing re-admissions' rates for patients in post-acute care settings.
  • On February 6, 2012, Sally Beauty Holdings Inc announced the underwritten public offering of 20,000,000 shares of its common stock held by investment funds associated with Clayton, Dubilier & Rice, LLC (CDR Investors) pursuant to the Company's shelf registration statement filed with the Securities and Exchange Commission.
  • On February 2, 2012, Walgreen Co and BioScrip Inc announced that it has entered into a definitive agreement under which Walgreens would acquire certain assets of BioScrip's community specialty pharmacies and centralized specialty and mail service pharmacy businesses and BioScrip would receive a total deal value of approximately $225 million.
  • On January 30, 2012, Walgreen Co announced a definitive agreement in which the company will acquire the prescription files and inventory from 33 Kmart pharmacies in 16 states.

Sources: Yahoo Finance, Google Finance, Marketwatch, Finviz, Reuters.

Source: Earnings Preview: Rite Aid