Rite Aid Shares Jump After Earnings Beat
Rite Aid Corp. shares jumped 4.6% in Tuesday premarket trading after the pharmacy retailer reported fourth-quarter earnings that beat expectations. Net loss was $21.1 million, or 2 cents per share, compared with earnings of $65.6 million, or 6 cents per share, for the same period last year. Adjusted EPS was break even, ahead of the FactSet consensus of a 4-cent loss. Revenue was $8.54 billion, up from $8.27 billion last year and beating the FactSet consensus of $8.27 billion. Chief Executive John Standley said "the lengthy merger process" with Walgreens Boots Alliance Inc. is "having a negative impact" on the company's results. The company is reviewing its strategy while discussions with the Federal Trade Commission take place, he said. The companies are working toward a close of the merger by July 31, 2017. Rite Aid shares are down 54.7% for the year so far while the S&P 500 index is up 6% for the period.
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