Rite Aid posts stronger-than-expected fiscal second-quarter sales and offers upbeat guidance amid ongoing demand for prescriptions and other essentials.
Rite Aid (RAD) - Get Report posted stronger-than-expected fiscal second-quarter sales as consumers continued to rely on the pharmacy chain for prescriptions and other essentials amid the ongoing coronavirus pandemic.
Rite Aid said adjusted net income from continuing operations rose to $13.5 million, or 25 cents a share, vs. a loss of $78.7 million, or $1.48 a share, in the comparable year-ago quarter. Analysts polled by FactSet had been expecting earnings of 1 cent a share.
Sales were $5.98 billion, up 11% year over year and well above analysts’ estimates of $5.75 billion.
Rite Aid said the net-loss improvement was due “primarily to an increase in adjusted earnings before income, taxes, depreciation and amortization (EBITDA)” as well as a drop in income tax and interest costs and a “last in, first out,” or LIFO credit in the current quarter compared to a LIFO charge in the same quarter a year ago.
Source: Rite Aid
Adjusted EBITDA from continuing operations was $151.6 million or 2.5% of sales, compared to $134.2 million, or 2.5% of sales, in the year-earlier quarter.
Looking forward, strong demand for flu shots, continued improvement in what it calls “pharmacy network management” and additional cost-savings efforts should help bolster both revenue and adjusted EBITDA, the company said.
For fiscal 2021, Rite Aid expects to post an adjusted net loss of between $190 million and $140 million and adjusted EBITDA of between $475 million and $525 million. On a per-share basis, the pharmacy chain is expecting to lose as much as 67 cents a share, or earn as much as 9 cents.
Same-store sales are expected to grow in the range of 3% to 4%, while overall sales are expected to ring in between $23.5 billion and $24 billion.
Shares of Rite Aid were down 2.62% at $13 in premarket trading on Thursday.
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