Big Day Awaits ForRite Aid Corporation (NYSE:RAD) Investors

by Fiona Gabriel | Wednesday, Apr 9, 2014 | 1145 views

Boston, MA, 04/09/2014  (usastockreport) – Expectations are high for Rite Aid Corporation (NYSE:RAD), which is scheduled to report its fourth quarter earnings on April 10. While the share prices of the drugstore chain company has performed well, but its report card for the quarter would provide a clearer glance of how the company has faired this time?

Fourth-Quarter Preview

For the fourth quarter, analysts have mixed expectations, they project to report revenue at $6.54 million, which if correct, would indicate a 1% growth in sales as $6.46 million in the previous year’s quarter. As per the monthly reports furnished by the company, its comparable-store-sales are expected to be the main driver of its monthly sales, which will be partially counterbalanced by few locations in operation.

While the market is confident of its top-line growth, there is little doubt if its profitability will also depict an equivalent growth. For the quarter-to-be reported, the earnings per share is anticipated to come at $0.04, if correct, it would mean a 69% drop in its previous year’s earnings of $0.13 per share. The drop could be a result of a greater number of shares but also due to high costs. During the period from 2013 to 2014, Rite Aid Corporation grew its share count by approximately 7% and if the trend continues then it could lead to a further fall in profits.

Might Not Be The Best One

There have been mixed opinions as to how the company will deliver for the quarter. While there are many in favor of it, on account of the positive trends continuing in the pharmaceutical industry. There are experts, who hold hold view that the expectations for the company is on the  lower side for the fourth quarter and appears dull, when compared with the performance depicted by the competitors like Walgreen and CVS. Therefore, based on in-depth comparisons between these business competitors, experts suggest that Rite Aid might not offer best in the industry at this point of time.

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