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Rite Aid Corporation (NYSE:RAD) is scheduled to report its Q2 2013 results on September 20, 2012, before market opens. The Street expects EPS and revenue of ($0.07) loss and $6.21B, respectively. In this article, I will recap the historical results of the company, its latest EPS estimates vs. surprises, the latest news from RAD and the news from its closest competitors.

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Recent EPS Actuals vs. Estimates

In the last quarter it reported ($0.03) loss per share, beating analyst estimates of ($0.04) loss.

The consensus EPS estimate is ($0.07) loss based on 6 analysts' estimates, up from ($0.11) loss a year ago. Revenue estimates are $6.21B, just below $6.27B from a year ago. The median target price by analysts for the stock is $1.70.

Average recommendation: Hold

Source: Marketwatch

Latest News

  • On June 21, 2012, Rite Aid Corporation updated fiscal 2013 guidance and expects sales expected to be between $25.3 billion and $25.7 billion and same store sales to range from a decrease of 0.5% to an increase of 1.0% over fiscal 2012.
  • On June 19, 2012, Rite Aid Corporation and its subsidiaries and plaintiffs' counsel in fifteen wage and hour collective and class action lawsuits announced that they have reached a global settlement in these lawsuits which involve the alleged misclassification of Rite Aid's salaried assistant store managers and co-managers and seek overtime pay for hours worked in excess of 40 hours per week.
  • 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 (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 has 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

GNC Holdings (NYSE:GNC), Sally Beauty Holdings (NYSE:SBH), Walgreen Co. (NYSE:WAG), and Wal-Mart Stores (NYSE:WMT) are peers for comparison for Rite Aid and the table below provides the key metrics for these companies and the industry.

Rite Aid Corporation key ratio comparison with direct competitors

The chart below compares the stock price changes as a percentage for the selected companies and S&P 500 index for the last one-year period.

RAD Chart

RAD data by YCharts

Competitors' Latest Development

  • On September 13, 2012, Reuters reported that a University of California patent licensee which has sued some of the U.S. companies is taking on three more, Facebook Inc, Wal-Mart Stores, Inc. and The Walt Disney Company.
  • On August 27, 2012, Sally Beauty Holdings Inc announced that its Board of Directors has approved a new stock repurchase program authorizing the Company to repurchase up to $300 million of its common stock over an 18-month period beginning October 1, 2012.
  • On August 27, 2012, Sally Beauty Holdings Inc announced the retirement of three members of the board of directors of Sally Beauty Holdings, Inc., James G. Berges, Kenneth A. Giuriceo and Richard J. Schnall.
  • On August 17, 2012, Reuters reported that an Indiana union pension fund that holds shares in Wal-Mart Stores Inc has sued the Company to gain access to thousands of internal documents related to allegations that a Wal-Mart subsidiary bribed Mexican government officials.
  • On August 16, 2012, Wal-Mart Stores Inc announced that for third quarter of 2012, it expects diluted earnings per share (EPS) from continuing operations to range between $1.04 and $1.09. This compares to last year's third quarter reported EPS of $0.97. For fiscal 2012, it expects EPS guidance to a range of $4.83 to $4.93. Previous range was $4.72 to $4.92. According to I/B/E/S Estimates, analysts were expecting the Company to report EPS of $1.05 for third quarter of 2012 and EPS of $4.93 for fiscal 2012.
  • On August 15, 2012, GNC Holdings Inc announced the closing of an underwritten offering of 10 million shares of its Class A common stock sold by Ares Corporate Opportunities Fund II, L.P. (Ares) and Ontario Teachers' Pension Plan Board (OTPP).
  • On August 9, 2012, GNC Holdings Inc announced that an underwritten offering of 10 million shares of its Class A common stock to be sold by Ares Corporate Opportunities Fund II, L.P. (Ares) and Ontario Teachers' Pension Plan Board (OTPP).
  • On July 26, 2012, GNC Holdings Inc announced that the Board of Directors has authorized and declared a cash dividend of $0.11 per share of its common stock for the third quarter of 2012, payable on or about September 28, 2012 to stockholders of record at the close of business on September 14, 2012.
  • On July 26, 2012, GNC Holdings Inc update fiscal 2012 outlook based on current expectations and expects total company revenue of approximately $2.43 billion. Fiscal 2012 adjusted diluted earnings per share to be approximately $2.21, this compares to previous outlook of approximately $2.05. According to I/B/E/S Estimates, analysts were expecting the Company to report revenue of $2.40 billion and EPS of $2.12 for fiscal 2012.
  • On July 21, 2012, GNC Holdings, Inc. announced changes to its Board of Directors. Joseph Fortunato, the President and Chief Executive Officer of GNC, has been elected to serve as the Chairperson of the Board.
  • On July 19, 2012, Express Scripts Holding Co and Walgreens Co announced the companies have reached a multi-year pharmacy network agreement that includes rates and terms under which Walgreens will participate in the broadest Express Scripts retail pharmacy network available to new and existing clients.
  • On July 12, 2012, Walgreen Co announced consistent with its Board of Directors succession and rotational planning process, the appointment of James A. Skinner, Walgreens Board member since 2005 and recently retired McDonalds Chief Executive Officer, as the new non-Executive Chairman of the Board of Walgreens.
  • On July 6, 2012, Reuters reported that Five big U.S. retailers filed an antitrust lawsuit against Pfizer Inc and India's Ranbaxy Laboratories Ltd, accusing them of conspiring to delay sales of generic versions of Lipitor.
  • On July 5, 2012, Walgreen Co announced that it has entered into an agreement to purchase a regional drugstore chain in the mid-South region of the United States from Stephen L. LaFrance Holdings, Inc. and members of the LaFrance family.
  • On June 20, 2012, GNC Holdings Inc announced that its Board of Directors has authorized a program to repurchase up to an aggregate $300 million of the Company's Class A common stock.
  • On June 19, 2012, Walgreen Co and Alliance Boots GmbH, announced that they have entered into a strategic transaction designed to bring together the strengths of both companies to create the global pharmacy-led, health and wellbeing enterprise.
  • On June 19, 2012, Walgreen Co announced an increase in the quarterly dividend of 22.2% to $0.275 per share from the previous rate of $0.225 per share. The dividend declared by the Board is payable September 12, 2012, to shareholders of record August 17, 2012.

Technical Overview


The stock has a market capitalization of $1.20B and is currently trading at $1.33 with a 52-week range of $0.85-$2.12. The stock's year-to-date performance has been 5.56%. It is currently trading above 20 and 50 SMA, but below 200 SMA.

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

Source: Earnings Preview: Rite Aid Corporation Reports On September 20