Rite Aid Earnings: Lower Same Store Sales Lead To Lower Revenues, EPS
Rite Aid Corporation (NYSE:RAD) announced disappointing third quarter earnings on Thursday, December 22nd. For the quarter ended November 26th, the company’s revenue dipped by 1% year-on-year (y-o-y) to $8.15 billion. The decrease in revenue was primarily driven by a decline in Retail Pharmacy revenues to $6.5 billion from $6.7 billion in the same period last year. This was mostly due to a decrease in same store sales, which fell 3.4% over the prior year quarter, and 2.4% year-on-year decline in the number of prescriptions filled. Pharmacy Services revenues saw a 10% rise over the prior year quarter. The company posted net income of $15 million, which was a decrease of 48% from the previous year’s third quarter, and on an adjusted basis its earnings per share declined from 8 cents a share in the prior year quarter to 2 cents a share in the last quarter and missed the Reuters complied analyst estimates of 4 cents a share.
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Walgreens – Rite Aid Merger
Rite Aid awaits regulatory approval on its pending merger with Walgreens Boots Alliance and expects it to be completed by early next year. In line with the requirements of the Federal Trade Authority, the company has entered into an agreement with Fred’s for the sale of its 865 stores and assets for $950 million, in an all-cash transaction. The proposed sale of assets is subject to regulatory approval.
Additionally, the company did not issue revenue and EPS guidance figures for the upcoming quarter and fiscal year.
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