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Rite Aid Reports In-Line First Quarter, Guides Lower Than Forecasts, Shares Dip (RAD)

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Rite Aid Reports In-Line First Quarter, Guides Lower Than Forecasts, Shares Dip RAD

Pharmacy chain Rite Aid (NYSE: RAD) reported first quarter results that were roughly in line with expectations on both the top and bottom lines. Shares slipped though as the company announced full year earnings per share guidance that was slightly below analyst forecasts.

In Line First Quarter

Rite Aid reported earnings per share of $0.09 for the first quarter, in line with expectations. Earnings per share rose 400 percent from a year ago when the company reported a loss per share of $0.03.

Revenue was slightly better than expected in the quarter as revenue was reported at $6.29 billion for the quarter. Wall Street analysts were looking for revenue of $6.27 billion but revenue fell nearly three percent from the same period a year ago.

"We kicked off our new fiscal year by posting strong first-quarter results that reflect our continued operational and financial progress," said Rite Aid Chairman, President and CEO John Standley. "During the quarter, we generated net income for a third consecutive quarter and increased Adjusted EBITDA by more than $70 million over last year's first quarter."

"At the same time, our team's success in executing key initiatives like our wellness+ customer loyalty program, wellness store remodeling initiative and expanded pharmacy service offerings continue to drive our progress in transforming Rite Aid stores into true neighborhood destinations for health and wellness. We are pleased with our continued progress and remain focused on delivering the best products, service and care to meet our customers' unique wellness needs."

Rite Aid revised its full year revenue guidance to be between $24.9 billion and $25.3 billion, roughly in line with analyst forecasts. However, EPS guidance was rather weak as the company expects to earn between $0.01 and $0.16 per share compared to the forecast of $0.17. "The net income guidance reflects the anticipated charge from Rite Aid's recently announced refinancing transactions, as well as the interest savings from those transactions."

Shares Drop

Rite Aid shares fell in the pre-market 1.93 percent on relatively low volume to $3.05 per share. Shares are just off the 52-week high of $3.21 per share.

Posted-In: John StandleyEarnings News Guidance Management Pre-Market Outlook Markets Press Releases Best of Benzinga

 

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