Rite Aid stock advances on narrower-than-expected losses in Q3

Yahoo Finance Live anchors discuss third-quarter earnings for Rite Aid.

Video transcript

BRAD SMITH: Let's talk about Rite Aid, too. I don't think they have any amusement rides there, but it has been quite a ride for Rite Aid. It's up by about 2 and 1/2% here pre-market, following an earnings report in which the company posted narrower than expected losses. They beat on expectations on both the top and bottom lines.

The drugstore giant reported that same store prescription sales grew 4 and-- 4.4% year over year for the third quarter. There, you're taking a look at some of the actuals versus the estimates on your screen here. And then additionally noteworthy that the company had said that they lowered their guidance due to headwinds, including pharmacy margins, seasonal markdowns, and higher shrink.

BRIAN SOZZI: Well, hello, flu season impact. And we were talking about this, I think, yesterday with Anjalee about CVS and Walgreens. A big quarter for same store sales at Rite Aid, up 7 and 1/2%, mostly driven by sales in the pharmacy and also a 2.2% increase in front end sales. So what is that? Essentially people getting their prescriptions and before they leave, maybe they buy a thing of Gatorade or a candy bar and go home.

JULIE HYMAN: Yeah, but it is interesting if you look at the pharmacy companies versus one another, Rite Aid is sort of just not in the same league--

BRIAN SOZZI: I tend to shop at Rite Aid.

JULIE HYMAN: Well, but I was going to say also, just from the-- in terms of the-- CVS is obviously much more robust or full suite of healthcare services at this point. Walgreens sort of leaning that direction, but Rite Aid is not--

BRIAN SOZZI: Yeah, I mean, I went into Rite Aid over the weekend. I was looking for some new eye, like, retinol. They didn't have my brand. I went right next to Target next door. I got my retinol, Julie. It was great.

BRAD SMITH: OK, email the company about that.

BRIAN SOZZI: I will.

BRAD SMITH: It was down in some of the key categories. And there are really two key categories for this business. It is the pharmacy segment, and then of course, on the other side. So there's the retail pharmacy segment and then the pharmacy services segment as well. But pharmacy services was down year over year. And then additionally here, you saw the retail pharmacy segment down as well year over year, too.