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Rite Aid (RAD) Q3 Earnings: What's in Store for the Stock?
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Rite Aid Corporation is slated to report third-quarter fiscal 2017 results on Dec 22. Last quarter, the company’s earnings came in line with the Zacks Consensus Estimate, though it has outperformed the same by an average of 10.8% in the trailing four quarters. Let’s see how things are shaping up for this announcement.
Following the last quarter, management remains encouraged by the performance of its Pharmacy Services segment as well as its front-end business. The company’s results continue to benefit from improvements in prescription drug costs. Overall, Rite Aid’s constant focus on strengthening its portfolio of health and wellness services, coupled with its consistent endeavors to enhance pharmacy and clinical services bode well. Driven by these initiatives, Rite Aid’s shares have jumped 6.4% year to date, as against the Zacks categorized Retail – Drug Stores industry’s decline of 9.3%.
However, the company stated that challenges relating to the pharmacy reimbursement rate pressured results in the previous quarter, and the trend is expected to continue through the rest of the fiscal. This raises a concern for the company’s upcoming performance. Additionally, risks related to greater industry consolidation and competition remain threats for Rite Aid. So, let’s see if Rite Aid’s growth drivers can help it counter the challenges this time around.
Earnings Whispers
Our proven model does not conclusively show that Rite Aid is likely to beat earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 for this to happen. This is not the case here, as you will see below:
Zacks ESP: Rite Aid currently has an Earnings ESP of 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 5 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Rite Aid’s Zacks Rank #3 (Hold) increases the predictive power of ESP. However, the company’s ESP of 0.00% makes surprise prediction difficult.
We caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks Poised to Beat Earnings Estimates
Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Constellation Brands Inc. (STZ - Free Report) , scheduled to report earnings on Jan 5, has an Earnings ESP of +2.96% and a Zacks Rank #3.
Caterpillar Inc. (CAT - Free Report) , expected to report earnings on Jan 26, has an Earnings ESP of +3.03% and a Zacks Rank #3.
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Rite Aid (RAD) Q3 Earnings: What's in Store for the Stock?
Rite Aid Corporation is slated to report third-quarter fiscal 2017 results on Dec 22. Last quarter, the company’s earnings came in line with the Zacks Consensus Estimate, though it has outperformed the same by an average of 10.8% in the trailing four quarters. Let’s see how things are shaping up for this announcement.
RITE AID CORP Price and EPS Surprise
RITE AID CORP Price and EPS Surprise | RITE AID CORP Quote
Factors Influencing This Quarter
Following the last quarter, management remains encouraged by the performance of its Pharmacy Services segment as well as its front-end business. The company’s results continue to benefit from improvements in prescription drug costs. Overall, Rite Aid’s constant focus on strengthening its portfolio of health and wellness services, coupled with its consistent endeavors to enhance pharmacy and clinical services bode well. Driven by these initiatives, Rite Aid’s shares have jumped 6.4% year to date, as against the Zacks categorized Retail – Drug Stores industry’s decline of 9.3%.
However, the company stated that challenges relating to the pharmacy reimbursement rate pressured results in the previous quarter, and the trend is expected to continue through the rest of the fiscal. This raises a concern for the company’s upcoming performance. Additionally, risks related to greater industry consolidation and competition remain threats for Rite Aid. So, let’s see if Rite Aid’s growth drivers can help it counter the challenges this time around.
Earnings Whispers
Our proven model does not conclusively show that Rite Aid is likely to beat earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 for this to happen. This is not the case here, as you will see below:
Zacks ESP: Rite Aid currently has an Earnings ESP of 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 5 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Rite Aid’s Zacks Rank #3 (Hold) increases the predictive power of ESP. However, the company’s ESP of 0.00% makes surprise prediction difficult.
We caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks Poised to Beat Earnings Estimates
Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
CarMax Inc. (KMX - Free Report) , slated to report earnings on Dec 20, has an Earnings ESP of +2.82% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Constellation Brands Inc. (STZ - Free Report) , scheduled to report earnings on Jan 5, has an Earnings ESP of +2.96% and a Zacks Rank #3.
Caterpillar Inc. (CAT - Free Report) , expected to report earnings on Jan 26, has an Earnings ESP of +3.03% and a Zacks Rank #3.
Zacks' Top Investment Ideas for Long-Term Profit
How would you like to see our best recommendations to help you find today’s most promising long-term stocks? Starting now, you can look inside our portfolios featuring stocks under $10, income stocks, value investments and more. These picks, which have double and triple-digit profit potential, are rarely available to the public. But you can see them now. Click here >>