Why Rite Aid Shares Are Soaring Today

Rite Aid Corp RAD has reported Q4 FY22 sales of 6.06 billion, +2.5% Y/Y, beating the consensus of $5.95 billion. The Company reported an EPS loss of $(1.63) compared to $(0.78) a year ago.
The growth is driven by growth in the Retail Pharmacy, partially offset by a decline in the Pharmacy Services.
Retail Pharmacy Segment revenues increased 7.8% Y/Y to $4.43 billion. Same-store sales increased 8.3%, consisting of a 10.7% increase in pharmacy sales and a 2.7% increase in front-end sales.
In addition to the benefit from 3.3 million COVID-19 vaccinations, maintenance prescriptions increased 1%, while other acute prescriptions increased 9% on a same-store basis.
Pharmacy Services Segment revenues declined 9.4% to $1.7 billion due to a planned decrease in Elixir Insurance membership and a previously announced client loss due to industry consolidation.
Related: Deutsche Bank Sees Potential 'Dramatic Negative Inflection Point' For Rite Aid.
Store Closure: Rite Aid plans to close 145 unprofitable stores (including 63 announced last quarter). The Company has reduced expenses at Elixir associated with a reduction in membership. It expects cost initiatives to drive savings of $170 million in FY23.
Guidance: Rite Aid expects FY23 sales of $23.1 billion - $23.5 billion versus the consensus of $23.45 billion.
The Company expects Retail Pharmacy Segment revenue of between $17.7 billion - $18.0 billion and Pharmacy Services Segment revenue of $5.4 billion - $5.5 billion.
Rite Aid forecasts a net loss of $(167) million - $(210) million, and adjusted EBITDA of $460 million - $500 million. Adjusted EPS loss is anticipated at $(1.06) - $(0.53) vs. the consensus of $(1.36).
Price Action: RAD stock is up 13.9% at $8.53 during the market session on the last check Thursday.
Photo via Wikimedia Commons

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Why Rite Aid Shares Are Soaring Today

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