Snapshot of the series
Rite Aid Corporation (RAD) reported results for 3Q17 on Wednesday, January 3. The results relate to the three-month period ending December 2, 2017.
The Pennsylvania–based pharmacy chain reported better-than-expected earnings, which stood at $0.00 per share, compared to a loss of $0.02 projected by Wall Street. Its total sales fell 5.6% YoY (year-over-year) to $5.35 billion.
The company also initiated the process of transferring stores and related assets under its deal with Walgreens Boots Alliance (WBA) during the quarter. Rite Aid sold 1,932 stores and three distribution centers for $4,375 million to Walgreens Boots Alliance (WBA) in September.
Rite Aid’s long-awaited deal with Walgreens was scrapped in June 2017 as the two companies didn’t get the FTC (Federal Trade Commission) approval. Walgreens later proposed purchasing half of the stores but finally succeeded in getting approval for 1,932 Rite Aid stores in mid-September.
About Rite Aid
Rite Aid operates through two segments: the Retail Pharmacy and Pharmacy Services segments. Under the Retail Pharmacy segment, it sells prescription drugs and a range of health and beauty products, personal care items, cosmetics, and household items. Under the Pharmacy Services segment, the company provides PBM (pharmacy benefit management) services along with other pharmacy-related services.
The company recorded trailing-12-month (or TTM) sales of $29.3 billion. In comparison, competitors Walgreens Boots Alliance (WBA) and CVS Health (CVS) recorded TTM sales of $120 billion and $182 billion, respectively.
Investors looking for exposure to Rite Aid through ETFs can look at the First Trust Consumer Staples AlphaDEX Fund (FXG), which invests 1.9% of its portfolio in the company.
What’s in this series?
In this six-part series, you’ll get an overview of Rite Aid’s third-quarter results. We’ll also go over the company’s stock market performance, valuations, and Wall Street recommendations.