Rite Aid Corporation (NYSE: RAD) stock rebounded after better-than-expected earnings results for the third quarter of 2020. The shares soared to a 9-month high of $13.73 in Friday’s early trade.
The stock has fallen over 16% in the past year compared to a 52% decline as of Tuesday. The shares have risen over 64% in the past three months and over 75% in the past six months. During the one-month timeframe, the stock has climbed over 36%.
Till Wednesday, the company has been struggling to recover from the multi-year low on August 27 of $5.04. Rite Aid, which was hurt by the stiff competition, has been making additional investments in the marketing space for acquiring customers in the drugstore industry.
For the third quarter, the pharmacy retailer reported a profit compared to a loss last year, backed by lower costs and expenses as well as gain on debt retirements. The growth in the Medicare Part D membership drove the top line higher by 0.2%. This was hurt by a 1.7% decline in the Retail Pharmacy segment.
The company continues to invest in the expansion and integration of EnvisionRxOptions, particularly its services, technologies, and clinical offerings. The company is pursuing strategic partnerships with health plans and providers as it is on the front lines of healthcare delivery in America.
Rite Aid continues to have a focus on owned brand growth and will evolve its owned brand portfolio on the packaging with the goal of redefining its brands in fiscal 2021. Thrifty Ice Cream, which the company recently expanded to 900 additional stores, was a meaningful contributor to its Q3 growth.
Looking ahead into fiscal 2020, the company still expects net sales to be in the range of $21.5 billion to $21.9 billion and annual same-store sales growth in the range of 0-1%. The adjusted EPS guidance is narrowed to the range of $0.13-0.55 from the prior range of $0.00-0.56.
Listen to on-demand earnings calls and hear how management responds to analysts’ questions
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