Rite Aid First Quarter Earnings Sneak Peek

Rite Aid (NYSE:RAD) will unveil its latest earnings on Thursday, June 21, 2012. Rite Aid operates a retail drugstore chain in the United States. It operates its drugstores in 31 states across the country and in the District of Columbia.

Rite Aid Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for a loss of 3 cents per share, a narrower loss from the year-earlier quarter net loss of 6 cents. During the past three months, the average estimate has moved up from a loss of 4 cents. Between one and three months ago, the average estimate moved up. It has been unchanged at a loss of 3 cents during the last month.

Past Earnings Performance: Last quarter, the company missed estimates by 5 cents, coming in at net loss of 17 cents per share versus a mean estimate of a loss of 12 cents per share. In the third quarter of the last fiscal year, the company beat estimates by 6 cents.

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Stock Price Performance: Between March 21, 2012 and June 15, 2012, the stock price fell 68 cents (-36.6%), from $1.86 to $1.18. The stock price saw one of its best stretches over the last year between March 6, 2012 and March 14, 2012, when shares rose for seven straight days, increasing 23.5% (+39 cents) over that span. It saw one of its worst periods between May 10, 2012 and May 17, 2012 when shares fell for six straight days, dropping 17.5% (-25 cents) over that span.

A Look Back: In the fourth quarter of the last fiscal year, the company’s loss narrowed to a loss of $161.3 million (19 cents a share) from a loss of $205.7 million (24 cents) a year earlier, but missed analyst expectations. Revenue rose 10.7% to $7.15 billion from $6.46 billion.

Analyst Ratings: There are mostly holds on the stock with three of four analysts surveyed giving that rating.

Key Stats:

On the top line, the company is looking to build on three-straight revenue increases heading into this earnings announcement. Revenue increased 1.8% in the second quarter of the last fiscal year and 1.8% in the third quarter of the last fiscal year before climbing again in the fourth quarter of the last fiscal year of the last fiscal year.

Wall St. Revenue Expectations: On average, analysts predict $6.43 billion in revenue this quarter, a rise of 0.6% from the year-ago quarter. Analysts are forecasting total revenue of $25.53 billion for the year, a decline of 2.3% from last year’s revenue of $26.12 billion.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.75 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term. The company regressed in this liquidity measure from 1.82 in the third quarter of the last fiscal year to the last quarter driven in part by a decrease in current assets. Current assets decreased 2.4% to $4.5 billion while liabilities rose by 1.4% to $2.57 billion.

(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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