Rite Aid Q3 Profit Misses Estimates; Same Store Sales Down 3.4% - Quick Facts

(RTTNews) - Rite Aid Corp. (RAD) reported third-quarter adjusted net income per share of $0.02, compared to $0.08, prior year. On average, six analysts polled by Thomson Reuters expected the company to report profit per share of $0.04 for the quarter. Analysts' estimates typically exclude special items. Adjusted EBITDA was $274.1 million compared to $373.2 million, last year. The company said the decline in Adjusted EBITDA is due to a decrease of $117.5 million in the Retail Pharmacy Segment, resulting from lower pharmacy gross profit, partially offset by an increase in front end gross profit. Net income was $15.0 million or $0.01 per share compared to $59.5 million or $0.06 per share, prior year.

Third-quarter revenues were $8.1 billion compared to $8.2 billion in the prior year's third quarter, a decrease of 0.8 percent. Analysts expected revenue of $8.23 billion, for the quarter. Same store sales for the quarter decreased 3.4 percent over the prior year, consisting of a 4.7 percent decrease in pharmacy sales and a 0.4 percent decrease in front-end sales.

Retail Pharmacy Segment revenues were $6.5 billion and decreased 3.1 percent compared to the prior year period primarily as a result of a decrease in same store sales. Revenues in the company's Pharmacy Services Segment were $1.6 billion and increased 9.7 percent compared to the prior year period.

"Despite the difficult operating environment created by the extended duration of the merger process with WBA, our third quarter results show solid performance in our front-end business, good cost control and continued strong growth at our pharmacy benefit manager, EnvisionRx," said CEO John Standley.