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Free Research Report as Rite Aid Reported Better Than Expected Earnings Results

Stock Monitor: Walgreens Boots Alliance Post Earnings Reporting

LONDON, UK / ACCESSWIRE / January 16, 2018 / Active-Investors.com has just released a free earnings report on Rite Aid Corp. (NYSE: RAD). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=RAD. The Company posted its financial results on January 03, 2018, for the third quarter of the fiscal year 2018. Register today and get access to over 1000 Free Research Reports by joining our site below:

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Active-Investors.com is currently working on the research report for Walgreens Boots Alliance, Inc. (NASDAQ: WBA), which also belongs to the Services sector as the Company Rite Aid. Do not miss out and become a member today for free to access this upcoming report at:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Rite Aid most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

www.active-investors.com/registration-sg/?symbol=RAD

Earnings Highlights and Summary

For the three months ended December 02, 2017, Rite Aid's net revenues decreased 5.6% to $5.35 billion from $5.67 million in Q3 FY17. For the reported quarter, the Company's same store sales growth was negative 2.5%. The Company's revenue numbers were below analysts' expectations of $7.74 billion.

For the reported quarter, the Company's gross profit decreased 4.7% to $1.19 billion from $1.24 billion in Q3 FY17. For the reported quarter, the Company's gross margin increased 20 basis points to 22.2% of revenue from 22% of revenue in Q3 FY17.

During Q3 FY18, Rite Aid's adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) decreased 32.5% to $129.25 million from $191.33 million in the same period of last year. For the reported quarter, the Company's adjusted EBITDA margin decreased 100 basis points to 2.4% of revenue from 3.4% of revenue in Q3 FY17.

During Q3 FY18, Rite Aid's earnings before tax (EBT) was negative $34.24 million versus positive $18.93 million in the comparable period of last year.

For the reported quarter, Rite Aid's net loss was $18.18 million compared to a net income of $23.61 million in Q3 FY17. During Q3 FY18, the Company's diluted earnings per share (EPS) was negative $0.02 compared to positive $0.02 in the corresponding period of last year. For the reported quarter, Rite Aid's adjusted net income decreased 93.9% to $1.62 million from $26.76 million in Q3 FY17. The decline in adjusted net income was due to a decline in adjusted EBITDA. During Q3 FY18, the Company's adjusted diluted EPS was $0.00 compared to $0.03 in Q3 FY17, surpassing analysts' expectations of negative $0.02.

Segment Details

Retail Pharmacy - During Q3 FY18, the Company's Retail Pharmacy segment's revenue decreased 3% to $3.96 billion from $4.08 billion in the same period of last year, due to a decrease in same store sales and reimbursement rates. For the reported quarter, the segment's gross margin decreased 50 basis points to 27.5% of revenue from 28% of revenue in Q3 FY17. For the reported quarter, the segment's adjusted EBITDA margin decreased 110 basis points to 2.3% of revenue from 3.4% of revenue in Q3 FY17.

Pharmacy Services - During Q3 FY18, the Company's Pharmacy Services segment's revenue decreased 12.2% to $1.45 billion from $1.65 billion in the comparable period of last year. The decrease was due to an election to participate in fewer Medicare Part D regions and a decline in commercial business. For the reported quarter, the segment's gross margin increased 50 basis points to 6.8% of revenue from 6.3% of revenue in Q3 FY17. For the reported quarter, the segment's adjusted EBITDA margin decreased 40 basis points to 2.8% of revenue from 3.2% of revenue in Q3 FY17.

Balance Sheet

As on December 02, 2017, Rite Aid's cash and cash equivalents decreased 30.8% to $169.80 million from $245.41 million as on March 04, 2017. For the reported quarter, the Company's long-term debt, less current maturities, decreased 7.7% to $2.99 billion from $3.24 billion in Q4 FY17.

For the reported quarter, the Company's net accounts receivable increased 1.5% to $1.80 billion from $1.77 billion in Q4 FY17. For the reported quarter, Rite Aid's accounts payable increased 10.9% to $1.79 billion from $1.61 billion in Q4 FY17.

During Q3 FY18, the Company's net cash provided by operating activities decreased 41% to $128.98 million from $218.72 million in the corresponding period of last year.

Stock Performance Snapshot

January 12, 2018 - At Friday's closing bell, Rite Aid's stock rose 2.14%, ending the trading session at $2.39.

Volume traded for the day: 58.05 million shares, which was above the 3-month average volume of 26.09 million shares.

Stock performance in the last month – up 32.04%; previous three-month period – up 44.85%; past six-month period – up 2.58%; and year-to-date – up 21.32%

After last Friday's close, Rite Aid's market cap was at $2.61 billion.

Price to Earnings (P/E) ratio was at 22.55.

The stock is part of the Services sector, categorized under the Drug Stores industry. This sector was up 0.9% at the end of the session.

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