The stock price of Rite Aid Corporation (NYSE:RAD) is soaring after reporting positive second quarter financial results. The shares of the drug store chain are trading around $4.43 per share, up by nearly 20% around 1:00 in the afternoon in New York.
During the second quarter, Rite Aid Corporation (NYSE:RAD) generated a net income of $32.8 million or $0.03 diluted earnings per share on $6.3 billion revenue. The company said its adjusted EBITDA was $34.6 million or 5.4% of its revenues.
The financial results of the drug store chain beat the expectations of Wall Street analysts who projected that it would incur a $0.04 loss per share.
John Standley, chairman and CEO of Rite Aid Corporation (NYSE:RAD), said the company is making tremendous progress in transforming its 4,600 stores based on the success of its wellness65+ loyalty program for seniors and the strong start of its flu immunization campaign.
“”We posted excellent results in the second quarter, highlighted by another quarter of net income and an all-time company record for second-quarter Adjusted EBITDA,” said Stanley.
Same store sales increase by 1% during the quarter
Rite Aid Corporation (NYSE:RAD) said its same store sales increase by 1% during the quarter. According to the company, its pharmacy sales rose by 1.7%, but it was partially offset by a 0.3% decline in front-end sales. The volume of prescriptions filled by the drug store chain was flat compared with the same period a year earlier.
The drug store chain remodeled 109 stores and relocated 5 stores during the quarter. Rite Aid Corporation (NYSE:RAD) shut down 12 stores and acquired one stores. By the end of the period, the total number of its stores is 4,604.
Rite Aid raised its earnings guidance
For the fiscal year 2014, Rite Aid Corporation (NYSE:RAD) raised its earnings guidance and adjusted EBITDA due to the stronger-than-expected results in the first half of this year. The company maintained its expectation that it would achieve lower financial results in the remaining quarters of 2013 due to continued reimbursement rate pressures, pharmaceutical cost increases, and lower benefit from new generic drugs.
Rite Aid Corporation (NYSE:RAD) projected to achieve $1.24 billion to $1.3 billion adjusted EBITDA and net income in the range of $182 million or $0.18 per diluted shares. The company anticipated to generate $25.1 billion to $25.3 billion revenue.