Rite Aid's Swing to Profit Sends Stock Soaring

The pharmacy retailer swings to a profit on a slight boost in third-quarter revenue.
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Shares of pharmacy retailer Rite Aid (RAD) - Get Report were rising more than 45% Thursday after the company reported third-quarter results that topped analysts' estimates after swinging to a profit in the period from a year-earlier loss.

The Camp Hill, Pennsylvania-based company reported adjusted third-quarter earnings of 54 cents a share, well above forecasts that called for earnings of 7 cents. 

Revenue for the period rose slightly year over year to $5.46 billion from $5.45 billion. Analysts were expecting revenue of $5.42 billion.

"Our team delivered a strong quarter that provides us with momentum as we prepare to roll out our long-term strategy and position Rite Aid Corporation as an innovative leader in our industry," said Rite Aid CEO Heyward Donigan.

Adding a bit of intrigue to the company’s results, Donigan stated that the company will “soon reveal” its comprehensive strategy to revitalize the company’s stores by “leveraging the trust and expertise of our pharmacists in meeting the unique health and well-being” of its customers.

It wasn’t all good news for Rite Aid as the company reported a 0.1% decrease in same-store sales, consisting of a 0.1% increase in pharmacy sales coupled with a 0.5% decrease in front-end sales.

For the year, Rite Aid expects revenue to range between $21.5 billion and $21.9 billion with same-store sales growth expected to range between flat and 1%.

Shares jumped 42.31% in trading Thursday to $11.84.