- Rite Aid Corp (NYSE:RAD) has reported Q4 FY22 sales of 6.06 billion, +2.5% Y/Y, beating the consensus of $5.95 billion. The Company reported an EPS loss of $(1.63) compared to $(0.78) a year ago.
- The growth is driven by growth in the Retail Pharmacy, partially offset by a decline in the Pharmacy Services.
- Retail Pharmacy Segment revenues increased 7.8% Y/Y to $4.43 billion. Same-store sales increased 8.3%, consisting of a 10.7% increase in pharmacy sales and a 2.7% increase in front-end sales.
- In addition to the benefit from 3.3 million COVID-19 vaccinations, maintenance prescriptions increased 1%, while other acute prescriptions increased 9% on a same-store basis.
- Pharmacy Services Segment revenues declined 9.4% to $1.7 billion due to a planned decrease in Elixir Insurance membership and a previously announced client loss due to industry consolidation.
- Related: Deutsche Bank Sees Potential 'Dramatic Negative Inflection Point' For Rite Aid.
- Store Closure: Rite Aid plans to close 145 unprofitable stores (including 63 announced last quarter). The Company has reduced expenses at Elixir associated with a reduction in membership. It expects cost initiatives to drive savings of $170 million in FY23.
- Guidance: Rite Aid expects FY23 sales of $23.1 billion - $23.5 billion versus the consensus of $23.45 billion.
- The Company expects Retail Pharmacy Segment revenue of between $17.7 billion - $18.0 billion and Pharmacy Services Segment revenue of $5.4 billion - $5.5 billion.
- Rite Aid forecasts a net loss of $(167) million - $(210) million, and adjusted EBITDA of $460 million - $500 million. Adjusted EPS loss is anticipated at $(1.06) - $(0.53) vs. the consensus of $(1.36).
- Price Action: RAD stock is up 13.9% at $8.53 during the market session on the last check Thursday.
- Photo via Wikimedia Commons
Get all your news in one place.
100’s of premium titles.
One app.
Start reading
One app.
Get all your news in one place.
100’s of premium titles. One news app.
Why Rite Aid Shares Are Soaring Today
Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member?
Sign in here
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member?
Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member?
Sign in here
Our Picks