Rite Aid Corp. (NYSE: RAD) is getting a bit of a boost after earnings, despite there being no major success nor a major turnaround in the near future. The drug store chain posted narrower losses after its activities in closing stores and cutting costs. The real reason for the interest is that there are a few positive developments and no real blow-ups that were not known ahead.
It lost $98.4 million, which comes to -$0.11 EPS, and that is down from -$156.6 million and -$0.20 EPS a year ago. Revenues were down about 1% to $6.53 billion. Thomson Reuters had estimates at -$0.13 EPS and $6.55 billion in revenues.
The company now expects a wider loss for the year, although this appears to be based upon refinancing expenses. A larger interest expense than originally seen is the culprit. It has started refinancing a portion of its September 2010 maturities.
The issue to consider here is that its same-store sales actually grew by +0.6% as prescriptions rose by +2.2% for the quarter. The company also noted that net cash provided by operations was $357.6 million and its liquidity grew to $901.8 million at the end of the quarter.
Trading volume is still a bit light this morning but shares are indicated up 3% at $1.30 in pre-market trading. The 52-week range is $0.20 to $1.97.
Jon C. Ogg
June 24, 2009
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