Rite Aid Q3 Profit Beats Estimates; Lifts FY15 Outlook - Quick Facts

(RTTNews) - Rite Aid Corp. (RAD) reported third-quarter net income of $106.2 million or $0.10 per share, compared to $43.1 million or $0.04 per share in the comparable quarter last year. The company said the improvement in net income resulted primarily from an increase in Adjusted EBITDA, a lower LIFO charge, partially offset by a higher loss on debt retirement related to the redemption of the company's 10.25% senior secured notes.

On average, nine analysts polled by Thomson Reuters expected the company to report profit per share of $0.05 for the quarter. Analysts' estimates typically exclude special items.

Revenues for the latest third quarter were $6.69 billion, compared with $6.36 billion, a year ago. Revenues increased 5.3 percent primarily as a result of increase in same store sales. Same store sales for the quarter increased 5.4 percent over the prior year. Analysts expected revenue of $6.65 billion for the quarter.

For fiscal 2015, the company now expects net income to be between $315.0 million and $370.0 million or income per share of $0.31 to $0.37. Sales are expected to be in the range of $26.25 billion to $26.4 billion and same store sales are expected to range from an increase of 3.75 percent to an increase of 4.25 percent over Fiscal 2014. Analysts expect the company to report fiscal 2015 profit per share of $0.31 on revenue of $26.43 billion.

Earlier, the company expected net income to be between $223.0 million and $333.0 million or income per share of $0.22 to $0.33. Sales were expected to be in the range of $26.0 billion to $26.3 billion and same store sales were expected to range from an increase of 3.00 percent to an increase of 4.00 percent over Fiscal 2014.