Rite Aid 2Q earnings beat estimates; stock jumps

Pedestrians cross a street in front of a Rite Aid store in Oakland, California.

David Paul Morris | Bloomberg | Getty Images

Rite Aid’s stock surged by more than 11% on Thursday after the pharmacy chain reported better-than-expected earnings under new CEO Heyward Donigan.

Overall sales, however, fell short of analysts’ forecasts for its fiscal second quarter for 2020 ended Aug. 31, as did sales at locations open for at least a year.

Here’s how the company performed compared with what Wall Street expected, based on analysts surveyed by Refinitiv:

  • Adjusted earnings per share: 12 cents vs. 7 cents expected
  • Revenue: $5.37 billion vs. $5.41 billion expected

Rite Aid updated its full-year forecast, reiterating its revenue guidance of $21.5 billion to $21.9 billion for the full fiscal 2020 while lowering its projected earnings. Rite Aid now expects to lose $235 million to $275 million during fiscal 2020, compared with its earlier projection of a net loss of $170 million to $220 million.

However, it narrowed its adjusted earnings per share forecast. It now expects EPS to range from zero to 56 cents. It previously projected EPS to fall between a loss of 14 cents to a gain of 72 cents.

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