Categories AlphaGraphs, Earnings, LATEST, Other Industries

Rite Aid stock climbs after Q2 revenues surpass expectations

Rite Aid Corporation (RAD) met analysts’ expectations on earnings and topped them on revenues for the second quarter of 2019. Shares are up over 2% in premarket trade.

The company reported revenues of $5.4 billion for the second quarter of 2019 compared to $5.3 billion in the same period last year.

The drugstore chain reported a net loss of $359 million or $0.34 per share compared to a net income of $170 million or $0.16 per share last year. Net loss from continuing operations came in at $352.3 million or $0.33 per share due to a hefty impairment charge in the quarter. This compares to a net income of $188.4 million or $0.18 per share in the prior-year period.

Adjusted net loss from continuing operations was $7.9 million or $0.01 per share, in line with market expectations. This compares to a net income of $17.4 million or $0.02 per share last year.

Rite Aid second quarter 2019 earnings

Revenues in the Retail Pharmacy segment increased 0.2% helped by growth in same-store sales and revenues in Pharmacy Services grew 4.6% due to an increase in Medicare Part D membership. Same-store sales from Retail Pharmacy continuing operations improved 1%, reflecting a 1.6% increase in pharmacy sales and a 0.1% decrease in front-end sales.

For the full year of 2019, Rite Aid expects revenues to be $21.7 billion to $22.1 billion and same-store sales to be flat to up 1%. The company now expects a higher net loss of between $440 million to $485 million due to impairment charges. Adjusted earnings are expected to come in between a loss of $0.03 per share and an income of $0.01 per share.

Rite Aid also announced changes to its board and governance. The company has separated the Chairman and CEO positions and is nominating three new independent directors to the board.

During the quarter, Rite Aid remodeled 33 stores, closed 8 stores and opened one store. Total store count at the end of the quarter was 2,526.

Last month, the company terminated its merger agreement with Albertsons Companies Inc. and said it was moving on with its growth strategy as a standalone entity.

Earnings Preview: Rite Aid might not turn a positive surprise

Most Popular

Infographic: How Alaska Air Group (ALK) performed in Q1 2024

Alaska Air Group (NYSE: ALK) reported its first quarter 2024 earnings results today. Total operating revenue increased 2% year-over-year to $2.23 billion. Net loss amounted to $132 million, or $1.05 per

KMI Earnings: Kinder Morgan Q1 2024 adjusted profit increases; revenue drops

Kinder Morgan, Inc. (NYSE: KMI) reported higher adjusted earnings for the first quarter of 2024 despite a decrease in revenues. The energy infrastructure company also issued guidance for the full

What to expect when Altria (MO) reports first quarter 2024 earnings results

Shares of Altria Group, Inc. (NYSE: MO) stayed green on Wednesday. The stock has dropped 8% over the past one month. The tobacco giant is scheduled to report its first


Add Comment
Viewing Highlight