Rite Aid Corporation (NYSE:RAD) climbed to a profit in the third quarter and beat Wall Street’s expectations in the process. Rite Aid operates a retail drugstore chain in the United States. It operates its drugstores in 31 states across the country and in the District of Columbia.
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Rite Aid Corporation Earnings Cheat Sheet
Results: Reported a profit of $61.9 million (7 cents per diluted share) in the quarter. Rite Aid Corporation had a net loss of $52 million or a loss 6 cents per share in the year-earlier quarter.
Revenue: Fell 1.8% to $6.2 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Rite Aid Corporation beat the mean analyst estimate of a loss of 4 cents per share. It fell short of the average revenue estimate of $6.43 billion.
Quoting Management: “We have reached a significant milestone in our turnaround efforts by returning to profitability,” said Rite Aid Chairman, President and CEO John Standley. “We have now increased Adjusted EBITDA and same store prescription counts for eight consecutive quarters. Our third quarter performance is the result of our entire team’s continued efforts to fundamentally improve our business.””Our record Adjusted EBITDA was driven by strong prescription count growth, an increase in front-end same store sales and higher pharmacy gross margin resulting from the introduction of new generic medications. While we are pleased with our third quarter results, we remain focused on sustaining our positive momentum and achieving long-term success,” Standley added.
The company has now topped analyst estimates for the last three quarters. It beat the mark by 3 cents in the second quarter and by 5 cents in the first quarter.
The company’s profit in the latest quarter follows losses in the three previous quarters. The company reported a net loss of $38.8 million in the second quarter, a loss of $28.1 million in the first quarter and a loss of $161.3 million in the fourth of the last fiscal year.
Revenue has declined for two quarters in a row. In the second quarter, revenue declined 0.6% to $6.23 billion from the year-earlier quarter.
Looking Forward: Analysts seem more negative about the company’s results for the next quarter than ninety days ago. The average estimate for the fourth quarter has moved from a loss of 3 cents a share to a loss of 4 cents over the last ninety days. For the fiscal year, the average estimate has moved from a loss of 15 cents a share to a loss of 16 cents over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)