What To Expect From Rite Aid’s Earnings
Rite Aid Corporation (NYSE:RAD) is set to release its earnings for its fiscal second quarter on September 22 before markets open. In the first quarter of fiscal year 2017, the company reported revenues of $8.2 billion, an increase of 23.1% over the prior year quarter, and missed market expectations of $8.3 billion. The net loss of $4.58 million – which essentially amounted to $0.00 per share – missed the market expectations of $0.05 per share. The company declined to release the guidance figures for the upcoming quarters and full year due to the pending approval of its merger with Walgreens Boots Alliance.
In the past quarter, Rite Aid, the third largest pharmacy retail chain in the U.S., is expected to show a high single digit increase in revenues. The revenue from prescription drugs and front end sales is expected to drive the growth, primarily due to the aging U.S. population. The company entered the PBM market through the acquisition of EnvisionRx in August 2015. With the PBM market expected to grow at a CAGR of over 7% through 2019, [1] we expect the division to contribute a significant portion of the company’s revenue.
Owing to the Federal Trade Commission’s pending approval of Rite Aid’s merger with Walgreens Boots Alliance, the company will not hold an earnings call after the release of the results.
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Notes:- PBM U.S. Market, Rxresource, December 17 2015 [↩]