Rite Aid Narrows FY20 Adj. EPS Outlook Range - Quick Facts

(RTTNews) - While reporting financial results for the second quarter on Thursday, drugstore chain Rite Aid Corp. (RAD) narrowed its earnings outlook for the full-year 2020, while maintaining annual revenue and same store sales guidance.

The company said its outlook assumes continued prescription count growth, improvements in generic drug costs and strong SG&A expense control, offset by a decline in prescription reimbursement rates. It also assumes continued improvements in pharmacy network performance in the Pharmacy Services Segment.

For fiscal 2020, the company now expects adjusted earnings in a range of $0.00 to $0.56 per share, compared to the previous guidance range between a loss of $0.14 per share and earnings of $0.72 per share.

However, the company continues to project revenues between $21.5 billion and $21.9 billion, with same store sales expected to range from an increase of 0.0 percent to an increase of 1.0 percent over fiscal 2019.

On average, analysts polled by Thomson Reuters expect the company to report a loss of $0.02 per share on revenues of $21.61 billion for the year. Analysts' estimates typically exclude special items.