Rite Aid (RAD) Misses Q2 EPS by 25c, Revenues Beat; Offers FY21 EPS/Revenue Guidance

Rite Aid (NYSE: RAD) reported Q2 EPS of ($0.25), $0.25 worse than the analyst estimate of $0.00. Revenue for the quarter came in at $5.98 billion versus the consensus estimate of $5.74 billion.

• Revenues Increased 11.5 Percent – Driven by Growth in Both Retail Pharmacy and Pharmacy Services Segments
• Front-End Market Share Increased by 130 Basis Points in Dollars and 150 Basis Points in Unit Sales
• Net Loss from Continuing Operations Narrowed $65.5 Million to $13.2 Million, or $0.25 Per Share
• Adjusted EBITDA from Continuing Operations Increased $17.4 Million or 13% to $151.6 Million
• Company Issues Revised Fiscal 2021 Guidance

“We are pleased with our second quarter performance as we delivered another quarter of strong results while making solid progress on our bold, new RxEvolution strategy,” said Heyward Donigan, president and chief executive officer, Rite Aid. “Our retail pharmacists and associates have always been deeply committed to our communities, and they are doing a great job protecting our customers during a global pandemic. Thanks to them, Rite Aid continues to gain retail market share and increase both same store prescription count and front-end sales.”

“And at Elixir, our new leadership team is in place, and we are making progress on modernizing and integrating our many assets. We also officially launched our new Elixir brand and are focused on enhancing our curated solutions, products, clinical and digital capabilities. We grew membership in our Medicare Part D business and benefitted from strong expense control, especially as we continue to integrate Rite Aid and Elixir.”

“I am so proud of our 50,000 associates and how they are working together each and every day to deliver operational excellence and help our customers to not just get healthy, but get thriving. Together, we are building a strong foundation for sustainable growth and setting the stage to engage with consumers in ways never before seen in health care. A whole new Rite Aid is coming to life, and I’m excited to continue our journey to become a dominant mid-market PBM, unlock the value of our pharmacists and revitalize our retail and digital experiences.”

GUIDANCE:

Rite Aid sees FY2021 EPS of ($0.67)-$0.09, versus the consensus of $0.38. Rite Aid sees FY2021 revenue of $23.5-24 billion, versus the consensus of $23.74 billion.

Rite Aid Corporation is issuing revised fiscal 2021 guidance. The company’s guidance assumes strong demand for flu immunizations, continued improvement in pharmacy network management at Elixir and savings from our previously announced cost reduction initiatives, offset by continued reimbursement rate pressure and the impact of a less severe cough, cold and flu season on OTC sales and related prescriptions.

• Rite Aid Corporation expects revenues to be between $23.5 billion and $24.0 billion in fiscal 2021 with same store sales expected to range from an increase of 3.0 percent to an increase of 4.0 percent over fiscal 2020.
• Net loss is expected to be between $190 million and $140 million.
• Adjusted EBITDA is expected to be between $475 million and $525 million.
• Adjusted net (loss) income per share is expected to be between $(0.67) and $0.09.
• Capital expenditures are expected to be approximately $275 million.
• Free cash flow is expected to be between $110 million and $160 million.

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

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