Rite Aid’s stock rockets after big profit beat, raised outlook

Shares of Rite Aid Corp.

rocketed 21.6% in premarket trading Thursday, after the drug store chain reported fiscal third-quarter profit and revenue that beat expectations, and raised its full-year outlook to expect earnings rather than potential losses. Net income for the quarter to Nov. 28 fell to $54.1 million, or 8 cents a share, from $53.6 million, or 96 cents a share, in the year-ago period. Excluding non-recurring items, adjusted earnings per share slipped to 40 cents from 54 cents, but was well above the FactSet consensus of 2 cents. Revenue rose 12.0% to $6.12 billion, beating the FactSet consensus of $5.84 billion, as retail revenue grew 5.1% and pharmacy services revenue jumped 29.2%. For fiscal 2021, the company revised its revenue guidance to $23.9 billion to $24.2 billion from $23.5 billion to $24.0 billion, its same-store sales growth view to 3.5% to 4.5% from 3.0% to 4.0% and its adjusted per-share outlook to profit of 45 cents to 85 cents from a loss of 67 cents to a profit of 9 cents. The stock has run up 29.5% over the past three months while the S&P 500

has gained 10.3%.