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Rite Aid Reports Mixed Q2 Earnings, New CEO Says Pharmacy Chain 'Acting With Urgency'

Tanzeel Akhtar

Rite Aid Corporation (NYSE: RAD) reported second-quarter earnings of 12 cents per share on Thursday, beating the analyst consensus estimate of 7 cents by 71.43%. 

The company reported quarterly sales of $5.366 billion, missing the analyst consensus estimate of $5.41 billion by 0.81%. 

Rite Aid narrowed is fiscal 2020 EPS guidance from a range of a loss of 14-72 cents to a range of zero to positive 56 cents. The Street is estimating a 2-cent adjusted EPS loss for 2020. 

The company reaffirmed its 2020 sales guidance at a range of $21.5 billion-$21.9 billion versus a $21.61-billion estimate.

“In talking with many associates during my first 45 days, we know there is important work in front of us, and we are acting with urgency to finalize a strategic plan that positions our company to meet its full potential,” CEO Heyward Donigan said in a statement.

View more earnings on RAD

"As we continue these efforts, I'd like to thank our Rite Aid team for their hard work during the second-quarter. Our adjusted EBITDA results exceeded our plan driven by prescription count growth and strong expense control. This gives us important momentum for our future, and I look forward to working closely with our team to deliver a solid finish to our fiscal year and position Rite Aid as an innovative leader in our industry." 

Rite Aid shares were trading up 9.88% at $8.45 in Thursday’s premarket session. The stock has a 52-week high of $27.20 and a 52-week low of $5.04.

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