Rite Aid Q4 Profit Soars; Issues FY16 Outlook - Quick Facts

(RTTNews) - Rite Aid Corp. (RAD) reported fourth-quarter net income of $1.835 billion or $1.79 per share, compared to $55.4 million or $0.06 per share in the comparable quarter last year. On average, ten analysts polled by Thomson Reuters expected the company to report profit per share of $0.07 for the quarter. Analysts' estimates typically exclude special items.

Current year net income included the favorable impact of a reduction of a deferred tax asset valuation allowance of $1.841 billion and income tax expense of $125.3 million compared to last year's income tax benefit of $6.0 million.

Revenues for the latest fourth quarter were $6.85 billion, up from $6.60 billion, a year ago. Revenues increased 3.8 percent primarily as a result of increase in same store sales. Same store sales for the quarter increased 4.5 percent over the prior year. Analysts expected revenue of $6.80 billion for the quarter.

For fiscal 2016, the company expects net income to be between $190 million and $275 million or income per share of $0.19 to $0.27. Sales are expected 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 profit per share of $0.43 on revenue of $27.19 billion.