Rite Aid tops W. Street Q2 ex­pec­ta­tions, re­vises forecast

Arab Times - - BUSINESS PLUS -

This is the sign on a Rite Aid pharmacy in Pitts­burgh, Penn­syl­va­nia. Rite Aid topped

Wall Street ex­pec­ta­tions for the fis­cal sec­ond quar­ter, Thurs­day, Sept. 24, and gave a re­vised an­nual forecast, one quar­ter af­ter with­draw­ing it due to COVID-19 un­cer­tainty. (AP)

Rite Aid topped Wall Street ex­pec­ta­tions for the fis­cal sec­ond quar­ter and gave a re­vised an­nual forecast, one quar­ter af­ter with­draw­ing it due to COVID-19 un­cer­tainty.

The drugstore chain said Thurs­day that its quar­terly loss shrank to $13.2 mil­lion from $79.3 mil­lion in the pre­vi­ous year’s quar­ter. An in­come tax drop, an in­ven­tory credit and pharmacy sales growth helped.

Earn­ings, ad­justed for one-time gains and costs, to­taled 25 cents per share. Rev­enue grew more than 11% to $5.98 bil­lion.

An­a­lysts ex­pected, on av­er­age, a penny per share in earn­ings on $5.75 bil­lion in sales, ac­cord­ing to Fac­tSet.

Camp Hill, Penn­syl­va­nia-based Rite Aid Corp. runs more than 2,400 phar­ma­cies in 18 states and also pro­vides pharmacy ben­e­fits through its Elixir busi­ness.

Big­ger com­peti­tors like Wal­greens and CVS Health have seen their drugstore pre­scrip­tion sales fall, as the global pan­demic kept cus­tomers home and away from the doc­tor’s of­fice, es­pe­cially ear­lier this year.

Rite Aid did see a de­cline in some pre­scrip­tions in its fis­cal first quar­ter. But pre­scrip­tions filled in es­tab­lished stores climbed more than 2% in the quar­ter that ended in Au­gust.

Over­all sales from es­tab­lished stores climbed more than 3%.

The com­pany also booked an $8.7 mil­lion “last-in-first-out,” or LIFO, in­ven­tory credit in its sec­ond quar­ter. That com­pares to a $7.5 mil­lion charge last year.

The com­pany’s in­come tax ex­pense also fell from more than $27 mil­lion to $47,000.

Rite Aid now ex­pects full-year fis­cal 2021 re­sults to range from a loss of 67 cents per share to earn­ings of 9 cents per share.

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