Rite Aid shares skyrocket 20% after earnings beat

Rite Aid Corp.

RAD, +8.47%

stock soared more than 20.6% in Thursday premarket trading after the pharmacy retailer swung to a third-quarter profit and beat expectations. Net income totaled $51.5 million, or 96 cents per share, after a loss of $4.5 million, or 9 cents per share, last year. Adjusted EPS of 54 cents blew past the FactSet consensus for 7 cents per share. Revenue of $5.46 billion was up from $5.45 billion last year and ahead of the FactSet guidance for $5.42 billion. Retail pharmacy segment revenue was down 1.7% to $3.91 billion, but pharmacy service segment revenue was up 5.7% to $1.61 billion, due to an increase in Medicare Part D membership. Retail pharmacy same-store sales fell 0.1%, but front-end same-store sales excluding cigarettes and tobacco products were up 1%. For fiscal 2020, Rite Aid expects revenue between $21.5 billion and $21.9 billion, same-store sales to be flat to up 1% and adjusted EPS to be between 13 cents and 55 cents. The FactSet consensus is for revenue of $21.6 billion, same-store sales growth of 0.5% and EPS of 10 cents. Rite Aid shares have lost 48.7% over the last year while the S&P 500 index

SPX, -0.04%

is up 27.3% for the period.

Go to Source