Earnings Briefing - Rite Aid

LONDON, October 9, 2014 /PRNewswire/ --

Investor-Edge.com has issued free earnings briefing on Rite Aid Corp. (NYSE: RAD). On September 18, 2014, the company reported financial results for Q2 FY15 (period ended August 30, 2014). Click on www.investor-edge.com/FreeReports to read our free earnings review on Rite Aid. During Q2 FY15, Rite Aid Corp.'s revenue increased 3.9% on a Y-o-Y basis and its basic and diluted EPS grew $0.10 from the previous year quarter. Our free coverage report can be accessed at:

www.investor-edge.com/register

Earnings Overview  

Rite Aid Corp.'s revenue for Q2 FY15 increased to $6.52 billion from $6.28 billion in the preceding year quarter. The company's Q2 FY15 revenues exceeded Bloomberg analysts' forecasts of $6.49 billion. The increase in revenue is primarily attributable to increase in pharmacy same store sales. The Company's same store sales for the quarter increased 4.1% Y-o-Y, consisting of a 1.1% increase in front-end sales and a 5.6% Y-o-Y increase in pharmacy sales. The free research on RAD can be downloaded as in PDF format at:

www.Investor-Edge.com/RADFreeReport

The company's adjusted EBITDA during Q2 FY15 increased to $364.17 million from $341.59 million in Q2 FY14. Rite Aid Corp.'s adjusted EBITDA as a percentage of revenues also improved to 5.58% from 5.44% in the previous year quarter. Further, the company's LIFO (Last-In-First-Out) charges lowered to $1.54 million from $23.00 million in Q2 FY14. On account of increase in adjusted EBITDA, a lower LIFO charge and a $62.2 million loss on debt retirement in the previous year, Rite Aid Corp.'s net income during the reported quarter broadened to $127.85 million or $0.13 per diluted share from $32.83 million or $0.03 per diluted share in Q2 FY14. Moreover, the company's reported quarter net income outperformed Bloomberg analysts' forecasts of $61.20 million, or $0.06 per diluted share.

John Standley, Chairman and CEO of Rite Aid, stated that in Q2 FY15, team of dedicated Rite Aid associates worked together to execute the company's strategy and deliver results that reflect growth in net income and adjusted EBITDA and significant increases in same-store sales and prescription count. He added that heading forward, while the company believes that its key initiatives will continue to drive top-line growth, the company's management is revising its guidance based on lower than anticipated pharmacy margin in the second half of Fiscal 2015. Mr. Standley also mentioned that as the company navigates these headwinds, it will remain focused on growing its business, generating continued operational efficiencies and positioning its associates to deliver a consistently outstanding experience for its customers. Sign up and read the free analyst's notes on RAD at:

www.Investor-Edge.com/RAD-09102014

During Q2 FY15, Rite Aid Corp. relocated 5 stores, remodeled 117 stores and expanded 1 store, bringing the total number of wellness stores to 1,433. In addition, the company also opened 1 store and closed 10 stores, resulting in a total store count of 4,572 at the end of Q2 FY15.

On the basis of current estimates for reimbursement rates and anticipated lower profitability from new generics and generic drugs, Rite Aid Corp. is expecting decreases in pharmacy margin in the second half of FY15 as compared to its prior estimates. As a result, the company has lowered its guidance for adjusted EBITDA, net income and net income per diluted share. For full year FY15, the company now expects adjusted EBITDA to be in the range of $1.200 billion and $1.275 billion. Net income is expected to be between $223.0 million and $333.0 million and income per diluted share between $0.22 and $0.33. Rite Aid Corp. has also narrowed its guidance for sales and same store sales. The company anticipates sales between $26.0 billion and $26.3 billion and same store sales to grow between 3.00%- 4.00% Y-o-Y. Further, the capital expenditures are projected to be approximately $525 million. Visit Investor-Edge and access the latest research on RAD at:

www.Investor-Edge.com/RADEarningsCoverage

Stock Performance  

On the day of earnings release, September 18, 2014, shares in Rite Aid Corp. plummeted 18.52% and ended the session at $5.41. The stock has declined 7.39% since then, and on the last close, Wednesday, October 08, 2014, it finished at $5.01, which was 0.20% above its previous day's closing price. The stock vacillated between $4.75 and $5.03 during the trading session. A total of 33.45 million shares were traded, which was above its three months average volume of 29.59 million shares. Over the previous three trading sessions and over the last one month, the company's shares have lost 0.40% and 22.45%, respectively. Moreover, the stock has edged 0.99% lower from the beginning of 2014. Shares in Rite Aid Corp. are trading below their 50-day and 200-day moving averages of $6.03 and $6.55, respectively. Further, the company's shares traded at a PE ratio of 18.50 and have a Relative Strength Index (RSI) of 34.97.

Sneak Peek to Corporate Insider Trading  

In the last one month Rite Aid Corp. has not reported any share transactions by insiders to the U.S. Securities and Exchange Commission (SEC). Complimentary in-depth research on RAD is available at:

www.Investor-Edge.com/RADInsiderTrading

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