Rite Aid Corporation’s (NYSE:RAD) first quarter loss narrowed, beating estimates. 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: Loss narrowed to $28.1 million (loss of 3 cents per diluted share) from $63.1 million (loss of 7 cents per share) in the same quarter a year earlier.
Revenue: Rose 1.2% to $6.47 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. Analysts were expecting revenue of $6.43 billion.
Quoting Management: “Our turnaround efforts continue to be successful as demonstrated by our sixth consecutive quarter of increased same store sales and Adjusted EBITDA,” said Rite Aid Chairman, President and CEO John Standley. “During the quarter, we saw strong growth in same-store prescription counts while key initiatives like our popular wellness+ customer loyalty program, enhanced Rite Aid brand offerings and ground-breaking Wellness store format continued to gain traction. We’re proud of the hard work and dedication that our entire Rite Aid team has displayed in driving these positive results and look forward to delivering an even better shopping experience to our customers as we move ahead.”
Revenue has increased for four quarters in a row. Revenue increased 10.7% to $7.15 billion in the fourth quarter of the last fiscal year. The figure rose 1.8% in the third quarter of the last fiscal year from the year earlier and climbed 1.8% in the second quarter of the last fiscal year from the year-ago quarter.
The company topped expectations last quarter after falling short of forecasts in the fourth quarter of the last fiscal year with a loss of 17 cents versus a mean estimate of a loss of 12 cents per share.
Margins rose in the fourth quarter of the last fiscal year after falling the quarter before. Gross margin grew 0.6 percentage point from the year-earlier quarter to 27%. In the third quarter of the last fiscal year, the figure rose 1.4 percentage points to 24.9% from the year earlier quarter.
Looking Forward: Analysts seem more positive about the company’s results for the next quarter than a month ago. The average estimate for the second quarter has moved from a loss of 10 cents a share to a loss of 9 cents over the last thirty days. For the fiscal year, the average estimate has moved from a loss of 27 cents a share to a loss of 20 cents over the last ninety days.
(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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