Rite Aid Loss Narrower Than Expected

Rite Aid Corp. (NYSE: RAD) is seeing a warm reception after the troubled drug store chain managed to turn in a narrower loss in its quarterly report. The loss beat estimates by $0.03 per share, at a loss of $0.05 per share. Revenues were more or less in-line at $6.23 billion, versus the $6.21 billion consensus, even if those sales were down by 0.6%.

The company did actually lower its 2013 expectations and for comparable sales. Rite Aid said that its same-store sales for the quarter were flat over the prior year's 13-week period. That report consists of a 1.4% increase in front-end sales, but those were offset by a 0.7% decrease in pharmacy sales. The earnings report said that the weak pharmacy sales included roughly a 750 basis point negative impact from new generic introductions, while prescriptions filled in same stores rose by 4.0%.

Prescription sales accounted for 67.5% of total drugstore sales, and third-party prescription revenue was 96.5% of pharmacy sales. One issue that has helped is that Rite Aid has grown to roughly 25 million members now.

Shares are up 2% to $1.34 so far this morning and the 52-week trading range is $0.85 to $2.12. Unfortunately, Rite Aid remains a troubled story that has not gone very well for most shareholders.

JON C. OGG


Filed under: 24/7 Wall St. Wire, Earnings, Retail Tagged: RAD
Read Full Story

Markets

NASDAQ 6,624.22 0.56 0.01%
S&P 500 2,561.26 1.90 0.07%
DJIA 23,157.60 160.16 0.70%
NIKKEI 225 21,433.40 70.35 0.33%
HANG SENG 28,711.76 0.00 0.00%
DAX 13,043.03 47.97 0.37%
USD (per EUR) 1.18 0.00 0.12%
USD (per CHF) 0.98 0.00 -0.17%
JPY (per USD) 112.91 -0.10 -0.09%
GBP (per USD) 1.32 0.00 0.01%

Can't get enough business news?

Sign up for Finance Report by AOL and get everything from retailer news to the latest IPOs delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.