Rite Aid Corp. (NYSE: RAD) reported its most recent quarterly results before the markets opened on Thursday. The company said that it had a net loss of $0.01 per share on $5.39 billion in revenue. Consensus estimates had called for a net loss of $0.01 per share on revenue of $5.57 billion. In the fourth quarter of last year, it said it had breakeven earnings on $8.54 billion in revenue.
Retail Pharmacy Segment revenues were $4.0 billion and decreased 10.1% compared to the prior-year period, primarily as a result of a decline in same-store sales. Revenues in the Pharmacy Services Segment were $1.4 billion, a decrease of 4.3%, which was due to a decline in commercial business and changes in its composition of Medicare Part D membership.
Same-store sales from Retail Pharmacy continuing operations for the quarter decreased 1.7% over the prior year, consisting of a 2.3% decrease in pharmacy sales and a 0.6% decrease in front-end sales.
As of March 27, Rite Aid has completed the sale of all 1,932 stores and related assets to Walgreens. The transfer of the three distribution centers and related inventory is expected to begin after September 1, 2018.
Looking ahead to the fiscal full year, the company expects sales to be between $21.7 billion and $22.1 billion with EPS in the range of $0.02 to $0.06. The consensus forecast is $0.03 in EPS on $21.7 billion in revenue.
John Standley, Rite Aid board chair and chief executive, commented:
During the fourth quarter, we made significant progress in a number of areas: our Retail Pharmacy Segment delivered strong results with an increase in Adjusted EBITDA over the prior year; our Pharmacy Services Segment is off to a strong start in the new commercial selling season; shortly after the quarter ended, we completed the asset sale of 1,932 stores to WBA; and we entered into a definitive merger agreement with Albertsons Companies to transform Rite Aid into a truly differentiated leader in food, health and wellness.
Shares of Rite Aid traded up more than 3% to $1.69 Wednesday morning, with a consensus analyst price target of $2.04 and a 52-week range of $1.38 to $4.61.
24/7 Wall St.Are You Still Paying With a Debit Card?
The average American spends $17,274 on debit cards a year, and it’s a HUGE mistake. First, debit cards don’t have the same fraud protections as credit cards. Once your money is gone, it’s gone. But more importantly you can actually get something back from this spending every time you swipe.
Issuers are handing out wild bonuses right now. With some you can earn up to 5% back on every purchase. That’s like getting a 5% discount on everything you buy!
Our top pick is kind of hard to imagine. Not only does it pay up to 5% back, it also includes a $200 cash back reward in the first six months, a 0% intro APR, and…. $0 annual fee. It’s quite literally free money for any one that uses a card regularly. Click here to learn more!
Flywheel Publishing has partnered with CardRatings to provide coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.