Rite Aid Corp (NYSE:RAD) has reported Q1 FY24 sales of $5.65 billion, compared to $6.01 billion a year ago, beating the consensus of $5.32 billion.
The change was primarily due to the reduction in the Company’s Prescription Drug Plan membership and the loss of commercial clients at Elixir, partially offset by an increase in Retail Pharmacy Segment revenues driven by an increase in pharmacy sales.
The company reported an Adjusted EPS loss of $(0.73) compared to a loss of $(0.86) a year ago, beating the consensus of $(1.46).
Retail Pharmacy Segment revenues increased 3.4% Y/Y to $4.49 billion due to increased acute and maintenance prescriptions, partially offset by a reduction in COVID vaccine and testing revenue and store closures.
Total same-store prescriptions, excluding COVID immunizations, increased by 7.4%, with same-store maintenance prescriptions rising by 7.6% and other same-store acute prescriptions increasing by 6.8%.
Pharmacy Services Segment revenues declined 30.7% to $1.2 billion.
Guidance: Rite Aid raised its FY24 revenues outlook to $22.6 billion – $23 billion compared to $21.7 billion – $22.1 billion expected earlier, compared to the consensus of $21.8 billion, with retail pharmacy segment revenue of $18 billion – $18.3 billion ($17.8 million – $18.1 billion) and pharmacy services segment revenue of $4.6 billion – $4.7 billion ($3.9 billion – $4.0 billion) earlier.
Adjusted EPS loss is expected to be $4.29-$4.7, better than the prior guidance of $4.44- $4.93 loss and the consensus loss of $4.82.
Adjusted EBITDA is expected to be $330-$360 million ($340-$370 million).
Price Action: RAD stock is up 7.24% at $1.63 during the premarket session on the last check Thursday.
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