Rite Aid Third Quarter Earnings Sneak Peek

Rite Aid (NYSE:RAD) will unveil its latest earnings on Thursday, December 20, 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 4 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 down from a loss of 2 cents. Between one and three months ago, the average estimate moved down. It also has dropped from a loss of 3 cents during the last month.

Past Earnings Performance: The company is looking to beat analyst estimates for the third quarter in a row. Last quarter, it beat estimates with net loss of 5 cents per share against the mean estimate of 8 cents. In the prior quarter, the company reported profit of one cent.

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A Look Back: In the second quarter, the company’s loss narrowed to a loss of $38.8 million (5 cents a share) from a loss of $92.3 million (11 cents) a year earlier, beating analyst expectations. Revenue fell 0.6% to $6.23 billion from $6.27 billion.

Stock Price Performance: Between September 20, 2012 and December 14, 2012, the stock price fell 24 cents (-18.9%), from $1.27 to $1.03. 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 September 21, 2012 and October 2, 2012 when shares fell for eight straight days, dropping 10.2% (-13 cents) over that span.

Analyst Ratings: There are mostly holds on the stock among the limited number of analysts surveyed with two hold ratings.

Key Stats:

On the top line, the company is looking to get back on the right track after last quarter’s drop snapped a string of revenue increases. Revenue rose 1.8% in the third quarter of the last fiscal year, 10.7% in the fourth quarter of the last fiscal year and 1.2%in the first quarter before dropping in the second quarter.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.62 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 1.74 in the first quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 5.8% to $2.63 billion while assets decreased 1.9% to $4.24 billion.

Wall St. Revenue Expectations: Analysts predict a decline of 0.5% in revenue from the year-earlier quarter to $6.28 billion.

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