Rite Aid Earnings: RAD Stock Rockets 43% Higher on Better-Than-Expected Q3

Rite Aid (NYSE:RAD) earnings for the pharmacy company’s third quarter of fiscal 2020 have RAD stock flying high on Thursday. This is due to it reporting adjusted EPS of 54 for the quarter. That is well above Wall Street’s estimate of 9 cents per share. Revenue of $5.46 billion is also better than analysts’ estimate of $5.42 billion.

Rite Aid Earnings: RAD Stock Rockets 43% Higher on Better-Than-Expected Q3

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Here’s a further breakdown of the most recent Rite Aid earnings report.

  • Adjusted per-share earnings for the quarter are up 170% from the same time last year.
  • Revenue for the quarter is largely unchanged from the $5.45 billion in Q3 fiscal 2019.
  • The Rite Aid earnings report also sees it turn in an operating profit of $53.16 million.
  • That’s great compared to an operating loss from the same period of the year prior.
  • This also holds true for the company’s net income of $51.49 million.
  • The third quarter of the previous fiscal year saw RAD bring in a net loss.

Heyward Donigan, CEO of Rite Aid, says this about the RAD stock earnings.

“While we are pleased with these results, we have important work ahead of us to put our company on a path to long-term sustainable growth. We will soon reveal our comprehensive strategy that revitalizes Rite Aid retail pharmacies as fresh and relevant, leveraging the trust and expertise of our pharmacists in meeting the unique health and wellbeing needs of our communities.”

The Rite Aid earnings report also includes an update to its fiscal 2020 outlook. It now expects adjusted earnings per share ranging from 13 cents to 55 cents. The guidance also covers revenue of $21.50 billion and $21.90 billion. This compares well to Wall Street’s estimates of 5 cents per share and $21.64 billion.

RAD stock was up 43.16% as of Thursday afternoon.

As of this writing, William White did not hold a position in any of the aforementioned securities.

Article printed from InvestorPlace Media, https://investorplace.com/2019/12/rite-aid-earnings-send-rad-stock-soaring/.

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