During the second quarter ended Aug. 31, the drugstore chain reported net income of $32.8 million, up $71.6 million on the year-ago quarter. This marks the fourth consecutive quarter in the black. Same-store sales grew 1% across the 4,600-strong store network.
In a conference call to investors, Rite Aid CEO John Standley credited generic medications adding to pharmacy gross margins and strong expense control as key drivers for the positive balance sheet.
Rite Aid revised its 2014 fiscal guidance in light of its better-than-expected second-quarter earnings. It is anticipated adjusted EBITDA will be $1.24 to $1.3 billion, net income $182 to $268 million, and sales $25.1 to $25.3 billion for 2014.
"We believe we have an operational game plan that will succeed in meeting the unique needs of our customers while positing Rite Aid for long-term success," said Kenneth Martindale, Rite Aid President and Chief Operating Officer, during the call.
Thus far, 102.37 million shares of Rite Aid changed hands compared to its average daily volume of 15.9 million shares. Overall, Rite Aid is leading the S&P 500 which is down 0.16%.
TheStreet Ratings team rates Rite Aid as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation: