Earnings: Revenues increased 2.2% Y/Y to $6.11 billion, missing the estimate of $6.21 billion. The sales growth was driven by the Retail Pharmacy Segment, partially offset by a decline at the Pharmacy Services Segment.
Retail Pharmacy Segment revenues increased 6.5% Y/Y to $4.28 billion, driven by an increase in same-store sales and the inclusion of Bartell's results. Same-store sales increased 2.6%, consisting of a 5% increase in pharmacy sales and a 2.8% decrease in front-end sales.
The number of prescriptions filled in the same stores increased 7.1%. In addition to the benefit from COVID-19 vaccinations, other acute prescriptions increased 1.5%, and maintenance prescriptions increased 2.4% on the same-store basis.
The total store count at the end of the second quarter was 2,501.
Pharmacy Services Segment revenues declined 6.9% to $1.9 billion, primarily due to a decrease in membership in the PBM business and a reduction in Elixir Insurance membership.
Guidance: Revenues guidance for FY22 remains unchanged at $25.1 billion - $25.5 billion (consensus $25.13 billion). But, the Company expects Pharmacy Services Segment revenue of $7.7 billion - $7.8 billion, down from the prior outlook of $7.9 billion - $8.0 billion.
The Company expects a wider net loss for FY22 of $221 million - $197 million, against $175 million - $138 million expected earlier. Adjusted EPS loss is expected to be $(0.90) - $(0.53) (compared to $(0.79) - $(0.24) expected previously). Adjusted EBITDA is expected to be $460 million - $500 million, slightly better than prior guidance of $440 million - $480 million.
Price Action: RAD stock is down 7.35% at $14.14 during the market session on the last check Thursday.
Photo by Ildar Sagdejev via Wikimedia