Categories AlphaGraphs, Analysis

What investors should watch when Rite Aid (RAD) reports Q3 results Thursday

As drugstore chain Rite Aid (NYSE: RAD) prepares to report third-quarter earnings, there is caution among shareholders due to the dismal performance of the stock in recent months. The results will be published on Thursday at 7:00 am ET.

Related: Rite Aid Q2 2020 Earnings Conference Call Transcript

Retail Pharmacy, the core business, is yet to recover from the continuing slump, amid falling store footfall. However, the management’s efforts to improve operational efficiency, with support from pharmacy-benefit-management division EnvisionRxOptions and the steady rise in Medicare enrollments, should boost store traffic. The increasing focus on health and wellness gives customers a better store experience, complementing the improvement in brand offerings.

Rite Aid Corporation (NYSE: RAD) swung to a profit in the second quarter of 2020, from a loss in the year-over period, even as revenues growth remained stagnant

In the to-be-reported quarter, the pharmacy business is expected to have benefited from Rite Aid’s partnership with Amazon (AMZN). Also, recent investments in the digital channel are paying off, which is expected to have added to revenue growth.

Cost Pressure

Nevertheless, expenses are likely to remain elevated, mainly due to spending on promotional activities to tackle competition. Another concern is the impact of new generic drugs on the retail pharmacy business, which also faces pressure from unfavorable prescription reimbursement rates.

Market watchers forecast that earnings would drop 55% annually to $0.09 per share in the third quarter. Revenues are expected to remain broadly unchanged at $5.42 billion.

Looking Back

In the second quarter, Rite Aid turned to profit from last year’s loss, despite recording flat revenues. At 12 cents per share, earnings were above analysts’ forecast. Revenues came in at $5.36 billion and fell short of expectations, reflecting weakness in the retail pharmacy business.

CEO Exit

Recently, John Standley was forced to step down as CEO, ending a nine-year stint at Rite Aid, after his efforts to arrest the stock’s free-fall and bring the company to the recovery path failed. Earlier, Rite Aid’s attempts to clinch a merger deal with Albertsons fell apart. Currently, the stakeholders are pinning hope on the company’s new chief Heyward Donigan to turn things around.

Rite Aid’s stock witnessed a persistent downturn in the past few weeks, reversing the recent gains that marked a recovery from the multi-year lows seen earlier this year. The stock has lost 55% since the beginning of the year.

Follow our Google News edition to get the latest stock market, earnings and financial news at your fingertips

Most Popular

What to look for when CVS Health (CVS) reports Q3 earnings

Healthcare company CVS Health Corporation (NYSE: CVS) is all set to report earnings next week, with Wall Street expecting a mixed outcome. The company has been facing challenges in certain

eBay (EBAY): A few factors that helped drive growth in Q3 2024

Shares of eBay Inc. (NASDAQ: EBAY) stayed green on Friday. The stock has gained 32% year-to-date. The ecommerce leader delivered revenue and earnings growth for the third quarter of 2024,

CVX Earnings: Chevron reports lower revenue and profit for Q3 2024

Energy exploration company Chevron Corporation (NYSE: CVX) on Friday announced third-quarter 2024 financial results, reporting a decline in net profit and revenues. Net income attributable to Chevron Corporation dropped to

Comments

  1. Pingback: Lincoln Georgis
  2. Pingback: Arie Baisch
  3. Pingback: MILFCity
  4. Pingback: Lila Lovely
  5. Pingback: domains
  6. Pingback: valentines gift
  7. Pingback: personalized baby
  8. Pingback: Click Here
  9. Pingback: Click Here
  10. Pingback: Click Here
  11. Pingback: Click Here
  12. Pingback: Click Here
  13. Pingback: Click Here
  14. Pingback: Click Here
  15. Pingback: Click Here
  16. Pingback: Click Here
  17. Pingback: Click Here
  18. Pingback: Click Here
  19. Pingback: Click Here
  20. Pingback: Click Here
  21. Pingback: Click Here
  22. Pingback: Click Here
  23. Pingback: Click Here
  24. Pingback: Click Here
  25. Pingback: Click Here
  26. Pingback: Click Here
  27. Pingback: moveit studio
  28. Pingback: Space ROS
  29. Pingback: Click Here
  30. Pingback: Click Here
  31. Pingback: Click Here
  32. Pingback: Click Here
  33. Pingback: Click Here
  34. Pingback: Click Here
  35. Pingback: Click Here
  36. Pingback: Click Here
  37. Pingback: Click Here
  38. Pingback: Click Here
  39. Pingback: Click Here
  40. Pingback: Click Here
  41. Pingback: Click Here
  42. Pingback: Click Here
  43. Pingback: Click Here
  44. Pingback: Click Here
  45. Pingback: Click Here
  46. Pingback: Click Here
  47. Pingback: Click Here
  48. Pingback: Click Here
  49. Pingback: Click Here
  50. Pingback: Click Here
  51. Pingback: Click Here
  52. Pingback: Click Here
  53. Pingback: Click Here
  54. Pingback: Click Here
  55. Pingback: Click Here
  56. Pingback: Click Here
  57. Pingback: Click Here
  58. Pingback: Click Here
  59. Pingback: Click Here
  60. Pingback: Click Here
  61. Pingback: Click Here
  62. Pingback: Click Here
  63. Pingback: Click Here
  64. Pingback: Click Here
  65. Pingback: Click Here
  66. Pingback: Click Here
  67. Pingback: Click Here
  68. Pingback: Click Here
  69. Pingback: Click Here
  70. Pingback: domain-names
  71. Pingback: Google reviews
  72. Pingback: 2023 Books
  73. Pingback: dead people
  74. Pingback: Chirurgie Tunisie
  75. Pingback: Mr. Khaled Azazy
  76. Pingback: Private university
  77. Pingback: future university
  78. Pingback: GPA Calculation
  79. Pingback: fue
  80. Pingback: fue
  81. Pingback: Mr. Essam Shiha
  82. Pingback: Prof. Ebada Sarhan
  83. Pingback: Marketing courses
  84. Pingback: Dental Hospital
  85. Pingback: human-development
  86. Pingback: luci led cameretta
  87. Pingback: pec deck
  88. Pingback: Fiverr Earn
  89. Pingback: Fiverr Earn
  90. Pingback: fiverrearn.com
  91. Pingback: clima
  92. Pingback: fiverrearn.com
  93. Pingback: fiverrearn.com
  94. Pingback: fiverrearn.com
  95. Pingback: ddkc
  96. Pingback: jute vs sisal rug
  97. Pingback: seo in Australia
  98. Pingback: bitcoin
  99. Pingback: bewerto
  100. Pingback: future university
  101. Pingback: future university
  102. Pingback: future university
  103. Pingback: future university
  104. Pingback: frenchie houston
  105. Pingback: slot online
  106. Pingback: seo
  107. Pingback: Fiverr.Com
  108. Pingback: FUE
  109. Pingback: FUE
  110. Pingback: Commercial moving
  111. Pingback: citi.com/activate
  112. Pingback: FiverrEarn
  113. Pingback: Fiverr
  114. Pingback: Fiverr.Com
  115. Pingback: Fiverr
  116. Pingback: FiverrEarn
  117. Pingback: partners
  118. Pingback: Betting tips
  119. Pingback: FiverrEarn
  120. Pingback: FiverrEarn
  121. Pingback: FiverrEarn
  122. Pingback: live sex cams
  123. Pingback: FiverrEarn
  124. Pingback: FiverrEarn
  125. Pingback: FiverrEarn
  126. Pingback: FiverrEarn
  127. Pingback: FiverrEarn
  128. Pingback: FiverrEarn
  129. Pingback: FiverrEarn
  130. Pingback: FiverrEarn
  131. Pingback: FiverrEarn
  132. Pingback: Kuliah Termurah
  133. Pingback: FiverrEarn
  134. Pingback: FiverrEarn
  135. Pingback: FiverrEarn
  136. Pingback: cheap sex cams
  137. Pingback: french bulldog buy
  138. Pingback: live sex cams
  139. Pingback: frt trigger
  140. Pingback: 늑대닷컴
  141. Pingback: Slot online HTML5
  142. Pingback: One Peace AMV
  143. Pingback: allgame
  144. Pingback: 918kiss
  145. Pingback: หวย24
  146. Pingback: pg slot
  147. Pingback: regles 421
  148. Pingback: cybersécurité
  149. Pingback: Raahe Guide
  150. Pingback: catskills hotel
  151. Pingback: megagame
  152. Pingback: electronic visa
  153. Pingback: 6.5 prc ammo
  154. Pingback: 25-06 ammo
  155. Pingback: 35 whelen ammo
  156. Pingback: masumintl
  157. Pingback: ItMe.Xyz
  158. Pingback: ItMe.Xyz
  159. Pingback: itme.xyz
  160. Pingback: ItMe.Xyz
  161. Pingback: masumintl

Comments are closed.

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top