Rite Aid (RAD) Misses Q1 EPS by 1c; Updates FY16 Outlook

Rite Aid (NYSE: RAD) reported Q1 EPS of $0.02, $0.01 worse than the analyst estimate of $0.03. Revenue for the quarter came in at $6.6 billion versus the consensus estimate of $6.65 billion.

The decline in net income resulted primarily from interest and other incremental pre-tax costs of $36.0 million, or $0.02 per share on an after-tax basis, incurred in connection with the company’s pending acquisition of EnvisionRx. These incremental costs were partially offset by an increase in Adjusted EBITDA.

Same store sales for the quarter increased 2.9 percent over the prior year, consisting of a 0.6 percent increase in front-end sales and a 3.9 percent increase in pharmacy sales. Pharmacy sales included an approximate 165 basis point negative impact from new generic introductions. The number of prescriptions filled in same stores increased 1.6 percent over the prior year period. Prescription sales accounted for 69.1 percent of total drugstore sales, and third party prescription revenue was 97.7 percent of pharmacy sales.

Rite Aid sees FY2016 EPS of $0.14-$0.22, versus the consensus of $0.26. Rite Aid sees FY2016 revenue of $26.9-27.4 billion, versus the consensus of $27.3 billion. Same store sales to range from an increase of 2.50 percent to an increase of 4.50 percent over fiscal 2015.

For earnings history and earnings-related data on Rite Aid (RAD) click here.

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