Rite Aid Q1 Profit Declines; Cuts FY16 Earnings Outlook - Quick Facts

(RTTNews) - Rite Aid Corp. (RAD) reported first-quarter net income attributable to common stockholders of $18.8 million or $0.02 per share, compared to $41.4 million or $0.04 per share in the comparable quarter last year. On average, eleven analysts polled by Thomson Reuters expected the company to report profit per share of $0.03 for the quarter. Analysts' estimates typically exclude special items.

The decline in net income resulted primarily from interest and other incremental pre-tax costs of $36.0 million, or $0.02 per share on an after-tax basis, incurred in connection with the company's pending acquisition of EnvisionRx.

Revenues for the latest first quarter were $6.65 billion, up from $6.47 billion, a year ago. Revenues increased 2.8 percent primarily as a result of increase in same store sales. Same store sales for the quarter increased 2.9 percent over the prior year. Analysts expected revenue of $6.65 billion for the quarter.

For fiscal 2016, the company updated its guidance to include the expected results of EnvisionRx and now expects net income to be between $150 million and $230 million or income per share of $0.14 to $0.22. Analysts now expects fiscal 2016 earnings of $0.26 per share.

Earlier, the company expected net income to be between $190 million and $275 million or income per share of $0.19 to $0.27.

The company still expects sales to be in the range of $26.9 billion to $27.4 billion and same store sales are expected to range from an increase of 2.5 percent to an increase of 4.5 percent over Fiscal 2015. Analysts expect the company to report fiscal 2016 revenue of $27.26 billion.