Rite Aid 1Q profit drops on drug costs, reimbursement rate reductions; revenue tops estimates

CAMP HILL, Pa. – Rite Aid’s fiscal first-quarter profit dropped 55 per cent as it dealt with higher-than-expected drug costs and reimbursement rate reductions. But its earnings met analysts’ expectations and revenue topped Wall Street’s view.

The nation’s third-largest drugstore chain reported on Thursday net income attributable to common stockholders of $41.4 million, or 4 cents per share, for the period ended May 31. A year earlier it earned $91 million, or 9 cents per share.

Revenue for the Camp Hill, Pennsylvania, company climbed 3 per cent to $6.47 billion from $6.29 billion. Analysts surveyed by FactSet expected revenue of $6.44 billion.

Sales at stores open at least a year rose 3.1 per cent, while sales at pharmacies open at least a year increased 4.6 per cent.

Rite Aid Corp. maintained its fiscal 2015 forecast.