Rite Aid (RAD) Tops Q4 Views

Rite Aid Corporation (RAD) reported fourth quarter non-GAAP EPS of $0.12 before the opening bell Wednesday, compared to the consensus estimate of $0.08. Revenues increased 3.8% from last year to $6.85 billion. Analysts expected revenues of $6.79 billion. The stock is currently up $0.04 to $8.73 on 1.74 million shares.

For the fiscal year ended Feb. 28, 2015, the drugstore chain reported profit of $2.11 billion, or $2.08 per share. Revenue was reported as $26.53 billion, compared to $25.5 billion for the prior year.

“In the fourth quarter, our strong growth in same-store sales [4.5% higher from the corresponding period in 2014] and prescription count as well as strong cost control helped drive continued profitability,” said in a statement Rite Aid Chairman and CEO John Standley.

“These positive results contributed to a successful year in which we took significant steps to further position Rite Aid as a retail healthcare company,” added Standley.

For FY/16, RAD issued revenue projection of $26.9 – $27.4 billion, compared to the consensus revenue estimate of $27.81 billion.

On valuation measures, Rite Aid Corp. shares, which currently have an average 3-month trading volume of 26.56 million shares, trade at a trailing-12 P/E of 26.49, a forward P/E of 20.21 and a P/E to growth ratio of 0.64. The median Wall Street price target on the name is $9.50 with a high target of $12.00. Currently ticker boasts 7 ‘Buy’ endorsements, compared to 1 ’Hold’ and no ‘Sell’.

Profitability-wise, RAD has a t-12 profit and operating margin of 1.25% and 3.09%, respectively. The $8.45 billion market cap company reported $115.89 million in cash in its most recent quarter.

RAD currently prints a one year return of about 40% and a year-to-date return of around 15.60%.

The chart below shows where the equity has traded over the last 52 weeks.

Rite Aid Corp. operates a chain of retail drugstores in the United States. The company was founded in 1927 and is headquartered in Camp Hill, Pennsylvania.

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