Categories Earnings, LATEST

Rite Aid (NYSE: RAD) swings to profit in Q3, beats estimates

Pharmacy retailer Rite Aid Corporation (NYSE: RAD) swung to a profit in the third quarter of fiscal 2020 from a loss last year, helped by a gain on debt retirements and an increase in adjusted EBITDA. The results exceeded analysts’ expectations.

Net income was $51.5 million or $0.96 per share compared to a loss of $4.5 million or $0.09 per share in the previous year quarter. Adjusted earnings soared by 93% to $0.54 per share. This is much better than the analysts’ expectations of $0.09 per share.

Rite Aid (RAD) Q3 2020 Earnings Review

Revenue rose by 0.2% to $5.46 billion. This is compared to the consensus estimates of $5.42 billion. Revenue from the Retail Pharmacy segment declined by 1.7% due to a reduction in store count, while that from the Pharmacy Services segment rose by 6% helped by an increase in Medicare Part D membership.

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.

The company’s outlook assumes continued prescription count growth, improvements in generic drug costs and strong SG&A expense control, offset by a decline in prescription reimbursement rates. Adjusted EBITDA is now expected to be $515-545 million. Capital expenditures are anticipated to be about $230 million for the full year.

For the third quarter, same-store sales from the Retail Pharmacy declined by 0.1%, which consists of a 0.1% rise in pharmacy sales and a 0.5% decrease in front-end sales. Front-end same-store sales, excluding cigarettes and tobacco products, rose by 1%. Pharmacy sales were negatively impacted by about 331 basis points as a result of new generic introductions.

Read: Avid Bioservices Q2 earnings snapshot

The number of prescriptions filled in same stores, adjusted to 30-day equivalents, increased 2.8% over the prior-year period resulting primarily from its continued emphasis on driving clinical services, including immunizations. Prescription sales from continuing operations accounted for 67.7% of total drugstore sales.

The company continues to face weakness in the Retail Pharmacy segment because of a decline in foot traffic count at its stores. The significant opportunity for the company, digital business, is likely to be the major contributor to the growth in the long term.

Browse through our earnings calendar and get all scheduled earnings announcements, analyst/investor conference and much more!

Most Popular

What to expect when eBay (EBAY) reports Q4 2023 earnings

Shares of eBay Inc. (NASDAQ: EBAY) stayed red on Tuesday. The stock has gained 9% over the past three months. The ecommerce company is scheduled to report its earnings results

Earnings: Walmart (WMT) Q4 results beat estimates; revenues up 5.7%

Retail giant Walmart Inc. (NYSE: WMT) on Tuesday reported higher adjusted earnings and revenue for the fourth quarter of 2024. The numbers also came in above the consensus estimates. Fourth-quarter

Home Depot (HD) Q4 2023 Earnings: Key financials and quarterly highlights

Home Depot (NYSE: HD) reported fourth quarter 2023 earnings results today. Sales were $34.8 billion, down 2.9% from the same quarter a year ago. Comparable sales decreased 3.5%.  Net earnings were $2.8

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