Rite Aid Corp. (NYSE: RAD) watched its shares hit a multiyear low on Thursday after the company reported its most recent quarterly results. The company posted a net loss of $0.01 per share on $7.68 billion revenue, compared with consensus estimates from Thomson Reuters that called for a net loss of $0.01 per share and $7.83 billion in revenue. The fiscal second quarter of last year reportedly had earnings of $0.03 per share on revenue of $8.03 billion.
Same-store sales for the quarter decreased 3.4% over the prior year, consisting of a 4.6% decrease in pharmacy sales and a 0.9% decrease in front-end sales.
Retail Pharmacy segment revenues were $6.3 billion and fell 3.4% year over year, primarily as a result of a decrease in same-store sales and reimbursement rates. Revenues in the company’s Pharmacy Services segment were $1.5 billion and dropped 8.7% compared to the prior year period, due to an election to participate in fewer Medicare Part D regions.
Prescription sales accounted for 67.8% of total drugstore sales, and third-party prescription revenue was 98.3% of pharmacy sales.
On the books, Rite Aid’s cash and cash equivalents totaled $238.98 million at the end of the quarter, down from $245.41 million at the end of the previous fiscal year.
John Standley, Rite Aid’s board chair and chief executive, commented:
While our performance for the quarter reflects a challenging reimbursement rate environment and the effects of an extended merger and asset sale process, securing regulatory clearance for the amended asset sale agreement with Walgreens Boots Alliance gives us a clear path forward to realize the benefits of the transaction and implement our plans to deliver improved results. In addition, we’ve announced this morning that Kermit Crawford – a proven leader with extensive retail pharmacy experience – is joining Rite Aid as president and chief operating officer to further strengthen our leadership team.
24/7 Wall St.Shares of Rite Aid were last seen down about 11% at $2.02, with a consensus analyst price target of $2.45 and a 52-week range of $2.01 to $8.77.
Is Your Money Earning the Best Possible Rate? (Sponsor)
Let’s face it: If your money is just sitting in a checking account, you’re losing value every single day. With most checking accounts offering little to no interest, the cash you worked so hard to save is gradually being eroded by inflation.
However, by moving that money into a high-yield savings account, you can put your cash to work, growing steadily with little to no effort on your part. In just a few clicks, you can set up a high-yield savings account and start earning interest immediately.
There are plenty of reputable banks and online platforms that offer competitive rates, and many of them come with zero fees and no minimum balance requirements. Click here to see if you’re earning the best possible rate on your money!
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.