Rite Aid Corp RAD has reported Q4 FY23 sales of $6.09 billion, compared to $6.06 billion a year ago, beating the consensus of $5.67 billion.
The marginal change was primarily due to an extra week in the fourth quarter and increases in comparable front-end sales and non-COVID prescriptions, partially offset by a reduction in revenue from COVID vaccines and testing, store closures, and the loss of commercial clients at Elixir.
The company reported an Adjusted EPS loss of $(1.24) compared to a loss of $(2.24) a year ago and the consensus of $(0.77).
Retail Pharmacy Segment revenues increased 8.2% Y/Y to $4.79 billion due to increased acute and maintenance prescriptions.
Total same-store prescriptions, excluding COVID immunizations, increased by 9.7%, with same-store maintenance prescriptions rising by 8.2% and other same-store acute prescriptions increasing by 14.9%.
Pharmacy Services Segment revenues declined 20.8% to $1.3 billion.
Guidance: Rite Aid expects FY24 revenues of $21.7 billion-$22.1 billion vs. consensus of $22.88 billion, with retail pharmacy segment revenue of $17.8 billion-$18.1 billion and pharmacy services segment revenue of $3.9 billion-$4.0 billion.
Adjusted EPS loss is expected to be $(4.44)- $(4.93).
Adjusted EBITDA is expected to be $340 million and $370 million.
The company expects to mitigate fiscal 2024 challenges related to reimbursement, COVID headwinds, and enrollment at Elixir and to drive meaningful Adjusted EBITDA growth in fiscal 2025 and 2026.
Price Action: RAD stock is down 8.44% at $2.17 on the last check Thursday.
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