Retail drugstore chain operator Rite Aid Corp. (RAD) posted a net income of $89.7 million or $0.09 per share in the first quarter, as against a loss of $28.09 million, or $0.03 per share, a year before.
Quarterly revenues for the 13-week quarter reached $6.3 billion, down 2.7 percent, compared with $6.47 billion in the prior-year quarter, due mainly to the impact of lower cost generics on pharmacy same store sales. Analysts estimated revenues of $ for the quarter.
On average, 4 analysts polled by Thomson Reuters expected earnings per share of $0.09, on $6.27 billion revenues for the quarter. Analysts' estimates typically exclude one-time items.
Same-store sales for the quarter slid 2.5 percent year-on-year, including a 3.8 percent drop in pharmacy sales, partially offset by a 0.4 percent increase in front end sales. Pharmacy sales included an approximate 458 basis point negative impact from new generic introductions. The number of prescriptions filled in same stores were down by 0.1 percent over the previous year. Prescription sales accounted for 67.5 percent of total drugstore sales, and third party prescription revenue was 97.0 percent of pharmacy sales.
Looking ahead, full-year net income is currently expected to be between $22.0 million or $0.01 per share and $162.0 million or $0.16 per share. The net profit target reflects the anticipated charge from Rite Aid's recently announced refinancing transactions, and the interest savings from those transactions.
Further, Rite Aid has confirmed its fiscal 2014 guidance for sales, same store sales and Adjusted EBITDA, that was updated on June 7, 2013. Sales are likely to be between $24.9 billion and $25.3 billion and same store sales to range from a decrease of 0.75 percent to an increase of 0.75 percent compared to fiscal 2013.
Analysts project earnings of $0.17 per share and revenue of $25.23 billion for the year.
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