Rite Aid Corporation (NYSE: RAD) reported a decline in third-quarter earnings, despite an increase in revenues, as margins were hurt by higher costs. The results, meanwhile, beat the consensus forecast.
The drugstore chain reported earnings from continuing operations of $0.40 per share for the third quarter, excluding special items, compared to $0.54 per share in the corresponding period of 2020. Unadjusted profit was $4.3 million or $0.08 per share, compared to $52.3 million or $0.98 per share a year earlier. Analysts were looking for a loss for the most recent quarter.
The bottom-line performance was affected by elevated expenses. Meanwhile, third-quarter revenues increased 12% year-over-year to $6.12 billion and came in above the estimates.
Read management/analysts’ comments on Rite Aid’s Q3 earnings
In the past twelve months, the company’s shares gained about 22%. They closed the last trading session lower but made strong gains soon after Thursday’s earnings report.