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The Zacks Consensus Estimate for the fiscal first-quarter bottom line is pegged at a loss of $1.49, suggesting a significantly wider loss compared with the loss of 60 cents reported in the year-ago quarter. The consensus mark has been unchanged in the past 30 days. The Zacks Consensus Estimate for its fiscal first-quarter revenues is pegged at $5.4 billion, suggesting an 11% decline from the prior-year quarter’s reported figure of $6 billion.
In the last reported quarter, RAD delivered a negative earnings surprise of 61%. The company has a trailing four-quarter negative surprise of 6.9%, on average.
Rite Aid’s Retail Pharmacy and Pharmacy Services segments have been sluggish. RAD expects continued growth in comp sales and scripts in its core business. However, the company has been witnessing muted demand for flu immunizations and COVID-19 vaccines, as well as the adverse impacts of closed stores, and reduced Elixir insurance memberships. Such factors are likely to have dented Rite Aid’s top-line performance in the fiscal first quarter.
On the last reported quarter’s earnings call, management indicated that the negative impacts of reimbursement rate declines, reduced demand for COVID-19 vaccines and testing, and lower revenues at Elixir are expected to hurt revenues throughout fiscal 2024. This is likely to have affected top-line performance in first-quarter fiscal 2024.
The company expects COVID-19 vaccines and testing demand to decline, with COVID-19 vaccine administration expected to decrease from 5.1 million in fiscal 2023 to 3 million in fiscal 2024. Also, wage inflation and investments in the turnaround program are concerning. The impacts from these factors are likely to get reflected in the to-be-reported quarter.
However, Rite Aid has been gaining from its expanded home delivery service to customers with an eligible prescription, with the benefit of a zero-delivery fee. It has also been providing pickup and drive-through services for prescriptions and over-the-counter products at its stores. RAD launched the Buy Online Pickup In Store initiative to offer better drive-through and curbside pickup options.
The company has been focused on accelerating growth of riteaid.com’s e-commerce sales and expanding its buy online, pick up at store offerings. Continued strength in on-demand delivery, third-party marketplaces, and buy online, pick up at store options are likely to have aided the company’s performance in the to-be-reported quarter.
Rite Aid has been focusing on strengthening its foothold in mid-market PBM, innovating across its retail and mail-order pharmacy channels, enhancing the in-store experience by curating digital offerings, improving merchandise and rebranding its image with a new logo.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Rite Aid this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Rite Aid has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell).
Stocks Poised to Beat Earnings Estimates
Here are some companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:
McDonald's (MCD - Free Report) currently has an Earnings ESP of +0.27% and a Zacks Rank #2. MCD is likely to register top and bottom-line growth when it reports second-quarter 2023 numbers. The Zacks Consensus Estimate for its quarterly revenues is pegged at $6.2 billion, suggesting an 8.4% growth from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for MCD’s second-quarter earnings is pegged at $2.75, suggesting 7.8% growth from the year-ago quarter. The consensus estimate for earnings has been unchanged in the past 30 days. MCD delivered an earnings beat of 6.9%, on average, in the trailing four quarters.
Starbucks (SBUX - Free Report) currently has an Earnings ESP of +1.22% and a Zacks Rank of 3. The company is expected to register top and bottom-line growth when it reports second-quarter 2023 numbers. The Zacks Consensus Estimate for SBUX’s quarterly revenues is pegged at $9.3 billion, which suggests an increase of 14.3% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for Starbucks’ earnings has been unchanged at 96 cents in the past 30 days. The consensus estimate for earnings suggests an improvement of 14.3% from the year-ago quarter’s reported figure. SBUX delivered an earnings surprise of 8.3%, on average, in the trailing four quarters.
Yum Brands (YUM - Free Report) currently has an Earnings ESP of +5.60% and a Zacks Rank #3. YUM is anticipated to register top and bottom-line growth when it reports second-quarter 2023 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $1.75 billion, indicating an improvement of 6.9% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for YUM’s earnings of $1.23 per share has moved up 1.7% in the past 30 days. The consensus estimate suggests growth of 17.1% from the year-ago quarter. YUM delivered an earnings miss of 2.4%, on average, in the trailing four quarters.
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Things Likely to Decide Rite Aid's (RAD) Fate in Q1 Earnings
Rite Aid Corporation is scheduled to report first-quarter fiscal 2024 results on Jun 29, before the opening bell.
The Zacks Consensus Estimate for the fiscal first-quarter bottom line is pegged at a loss of $1.49, suggesting a significantly wider loss compared with the loss of 60 cents reported in the year-ago quarter. The consensus mark has been unchanged in the past 30 days. The Zacks Consensus Estimate for its fiscal first-quarter revenues is pegged at $5.4 billion, suggesting an 11% decline from the prior-year quarter’s reported figure of $6 billion.
In the last reported quarter, RAD delivered a negative earnings surprise of 61%. The company has a trailing four-quarter negative surprise of 6.9%, on average.
Rite Aid Corporation Price and EPS Surprise
Rite Aid Corporation price-eps-surprise | Rite Aid Corporation Quote
Key Factors to Note
Rite Aid’s Retail Pharmacy and Pharmacy Services segments have been sluggish. RAD expects continued growth in comp sales and scripts in its core business. However, the company has been witnessing muted demand for flu immunizations and COVID-19 vaccines, as well as the adverse impacts of closed stores, and reduced Elixir insurance memberships. Such factors are likely to have dented Rite Aid’s top-line performance in the fiscal first quarter.
On the last reported quarter’s earnings call, management indicated that the negative impacts of reimbursement rate declines, reduced demand for COVID-19 vaccines and testing, and lower revenues at Elixir are expected to hurt revenues throughout fiscal 2024. This is likely to have affected top-line performance in first-quarter fiscal 2024.
The company expects COVID-19 vaccines and testing demand to decline, with COVID-19 vaccine administration expected to decrease from 5.1 million in fiscal 2023 to 3 million in fiscal 2024. Also, wage inflation and investments in the turnaround program are concerning. The impacts from these factors are likely to get reflected in the to-be-reported quarter.
However, Rite Aid has been gaining from its expanded home delivery service to customers with an eligible prescription, with the benefit of a zero-delivery fee. It has also been providing pickup and drive-through services for prescriptions and over-the-counter products at its stores. RAD launched the Buy Online Pickup In Store initiative to offer better drive-through and curbside pickup options.
The company has been focused on accelerating growth of riteaid.com’s e-commerce sales and expanding its buy online, pick up at store offerings. Continued strength in on-demand delivery, third-party marketplaces, and buy online, pick up at store options are likely to have aided the company’s performance in the to-be-reported quarter.
Rite Aid has been focusing on strengthening its foothold in mid-market PBM, innovating across its retail and mail-order pharmacy channels, enhancing the in-store experience by curating digital offerings, improving merchandise and rebranding its image with a new logo.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Rite Aid this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Rite Aid has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell).
Stocks Poised to Beat Earnings Estimates
Here are some companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:
McDonald's (MCD - Free Report) currently has an Earnings ESP of +0.27% and a Zacks Rank #2. MCD is likely to register top and bottom-line growth when it reports second-quarter 2023 numbers. The Zacks Consensus Estimate for its quarterly revenues is pegged at $6.2 billion, suggesting an 8.4% growth from the figure reported in the prior-year quarter.
You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for MCD’s second-quarter earnings is pegged at $2.75, suggesting 7.8% growth from the year-ago quarter. The consensus estimate for earnings has been unchanged in the past 30 days. MCD delivered an earnings beat of 6.9%, on average, in the trailing four quarters.
Starbucks (SBUX - Free Report) currently has an Earnings ESP of +1.22% and a Zacks Rank of 3. The company is expected to register top and bottom-line growth when it reports second-quarter 2023 numbers. The Zacks Consensus Estimate for SBUX’s quarterly revenues is pegged at $9.3 billion, which suggests an increase of 14.3% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for Starbucks’ earnings has been unchanged at 96 cents in the past 30 days. The consensus estimate for earnings suggests an improvement of 14.3% from the year-ago quarter’s reported figure. SBUX delivered an earnings surprise of 8.3%, on average, in the trailing four quarters.
Yum Brands (YUM - Free Report) currently has an Earnings ESP of +5.60% and a Zacks Rank #3. YUM is anticipated to register top and bottom-line growth when it reports second-quarter 2023 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $1.75 billion, indicating an improvement of 6.9% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for YUM’s earnings of $1.23 per share has moved up 1.7% in the past 30 days. The consensus estimate suggests growth of 17.1% from the year-ago quarter. YUM delivered an earnings miss of 2.4%, on average, in the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.