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Rite Aid Skyrockets on Impressive Earnings Report

  +Follow September 19, 2013 11:33AM
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Drugstore chain Rite Aid Corporation (RAD) issued their second quarter earnings report on Sept. 19, showing that the company’s turnaround has not slowed a bit. The company posted increased sales, notably in the key same-store sales metric, and a marked growth in the pharmacy department, upending analyst expectations.

The drugstore, which for a time flirted with bankruptcy, is in the midst of a massive turnaround.  After posting one lone profitable quarter in five years, Rite Aid has posted net gains over the last four quarters, and this one comfortably trumped analyst expectations.

Of particular excitement for Rite Aid is growing pharmaceutical sales. In a conference call with investors, Chief Financial Officer Frank G. Vitrano said, “The (sales) increase was due to higher pharmacy sales. Overall same-store sales increased 1% in the quarter, reflecting a higher pharmacy inflation rate,” referencing the chain’s aggressive expansion of that division, including the completion of the 1,000th Wellness Store remodel.

For their second quarter 2013 earnings report, Rite Aid reported a net profit of $32.8 million, or $0.03 per share, versus the net loss of $39 million, or -$0.05 per share, from the same period a year ago. Revenue for the quarter was $6.3 billion, as compared to $6.253 billion from the previous year. Analysts were expecting a loss of -$0.04 per share on revenues of $6.2 billion.

In its history, Rite Aid’s stock has gotten as high as $48.56 a share, in Dec. 1998, before a major accounting scandal racked the company, ending with several key executives, including the company’s CEO, going to jail.

Rite Aid popped on the news, gaining 21.02 percent to hit $4.49 a share. The stock is up a whopping 166 percent on the year, and has gained over 1,000 percent since March 2009, when the stock hit an all-time low of 20 cents a share.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions.


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Results for RAD
Market Headlines
2 Sep 14 18:43:03
$RAD: Einhorn bought Lam Research shares, sold Rite Aid last quarter http://t.co/QqJIboqcY3 http://t.co/5JRc6uyfxg
Jeffrey Blake
2 Sep 14 15:00:55
$RAD Rite Aid Is Underperforming Walgreen, But The Stock Could Still Rise http://t.co/EE8ycqLoK2
WESLEY TAN
2 Sep 14 13:57:15
RT @SeekingAlpha: Why Wal-Mart Will Not Buy Family Dollar http://t.co/aqW45AXikM $FDO $RAD $WMT
Daily Contracts
2 Sep 14 13:50:02
Real-Time feed of company contracts, original agreements and executive updates from Rite Aid $RAD http://t.co/SJPsVUIYRn
Market Updater
2 Sep 14 13:42:53
$RAD: Costco, Drugstores Seen Fueling July Sales Gains http://t.co/OsAFl4FvRq http://t.co/CHcUugflWb
richard
2 Sep 14 13:32:31
RT @SeekingAlpha: Why Wal-Mart Will Not Buy Family Dollar http://t.co/aqW45AXikM $FDO $RAD $WMT
Alysia Sarkisian
2 Sep 14 13:28:58
RT @SeekingAlpha: Why Wal-Mart Will Not Buy Family Dollar http://t.co/aqW45AXikM $FDO $RAD $WMT
Seeking Alpha
2 Sep 14 13:23:19
Why Wal-Mart Will Not Buy Family Dollar http://t.co/aqW45AXikM $FDO $RAD $WMT
Stock Rocket
2 Sep 14 13:11:58
$DGLY is up 940.2% in 3 weeks! Our new penny stock alerts are coming soon: http://t.co/G4xan5kQD5 $CWCO $RAD $HZNP
Stock Rocket
2 Sep 14 12:56:21
$DGLY is up 940.2% in 3 weeks! Our new penny stock alerts are coming soon: http://t.co/G4xan5kQD5 $INO $INNO $RAD
Fort Worth Companies
2 Sep 14 12:33:57
RT @MisterMainSt: .@justaddmuscle @Stephanie_Link definitely potential in $RAD but their margins are very thin & balance full of debt
State Employees CU
2 Sep 14 10:44:16
RT @MisterMainSt: .@justaddmuscle @Stephanie_Link definitely potential in $RAD but their margins are very thin & balance full of debt
Nico Starr
2 Sep 14 10:21:00
@jimcramer Hi Jim, I'm afraid to get back into $RAD but how does Russia or ISIS or even Europe AFFECT RAD? Where is the bottom? Thanks
Future Tech Investor
2 Sep 14 10:14:11
$LOCK major resistance break $GOOG $AAPL $FB $GE $DDD $CMG $JPM $MGT $PANW $BAC $JRJC $RAD $PFE $LOCO $GPRO $DD $FSLR $SCTY $DANG $GTAT $CRM
Business Updates
2 Sep 14 09:42:54
$RAD: Rite Aid July Sales Metrics Mostly Improved From June http://t.co/8zeWmbb4YY http://t.co/49rc9BtupD
Roben Farzad
2 Sep 14 08:54:39
Leadership from $CVS...Now what about Walgreen, Rite-Aid, Kroger, et al? $MO $LO $WAG $RAD http://t.co/I91F2Rct4h
Brian Kellenburger
2 Sep 14 07:40:35
@jimcramer is $RAD a possibility to acquire overlapping stores in a dollar store merger? #Cramer
Robert Moreira
2 Sep 14 07:13:06
$rad i have a feeling I'm going to make a good amount on my rad day trade today. long and strong baby. lets make money!!!
Financial Updates
1 Sep 14 22:42:51
$RAD: CFO Moves: Rite Aid, Roundy's, Mothercare http://t.co/4FB4roGWl8 http://t.co/Tnc6MOojim
Hereitfirst
1 Sep 14 21:45:50
how to trade $PLKD $SLIO $TBEV $NTEK $NYBD $TSLA $GOOGL $GOOG $GRPN $NFLX $UA $AMZN $FB $BBRY $RAD $FNMA $YELP $AAPL http://t.co/oPrzqFMCVN
Stockaholics
1 Sep 14 20:44:12
$IWEB closed up 100% today, on more than 290 MILLION shares traded! Huge News: http://t.co/ucQcnpafDY $CWCO $RAD $HZNP
Stockaholics
1 Sep 14 20:27:39
$IWEB closed up 100% today, on more than 290 MILLION shares traded! Huge News: http://t.co/ucQcnpafDY $INO $INNO $RAD
Legrand Enterprises
1 Sep 14 16:39:09
RT @MisterMainSt: .@justaddmuscle @Stephanie_Link definitely potential in $RAD but their margins are very thin & balance full of debt
Stockaholics
1 Sep 14 16:16:06
$IWEB closed up 100% today, on more than 290 MILLION shares traded! Huge News: http://t.co/ucQcnpafDY $CWCO $RAD $HZNP
Stockaholics
1 Sep 14 15:59:21
$IWEB closed up 100% today, on more than 290 MILLION shares traded! Huge News: http://t.co/ucQcnpafDY $INO $INNO $RAD
Financial Headlines
1 Sep 14 15:42:50
$RAD: Plug in to Rite Aid for This Year’s Trendiest Back-to-School Needs http://t.co/HWWmjsFzLl http://t.co/6tDJ0F8mRf
Stock News Updates
1 Sep 14 10:42:53
$RAD: 3 Reasons for Rite Aid Corporation's Resurgence http://t.co/nDCJCdgCeW http://t.co/dIuGXqQTK5
Auto Binary option
1 Sep 14 09:47:59
RT @VanMacher: $RAD: Rite Aid Corporation is Going in the Right Direction http://t.co/eZnnWvOVzs http://t.co/V1fvixvgtu
Market Headlines
1 Sep 14 09:42:53
$RAD: Rite Aid Corporation is Going in the Right Direction http://t.co/eZnnWvOVzs http://t.co/V1fvixvgtu
Wall Street Monitor
1 Sep 14 08:42:53
$RAD: Brighter Jobs Picture, Deals Fuel Retail July Sales http://t.co/CqaSNnx9MN http://t.co/M0mYnqtZaD
Biz Headlines
1 Sep 14 06:42:51
$RAD: Rite Aid's (RAD) Key Sales Metrics for July Improved 4.6% http://t.co/M468Apb2N6 http://t.co/jim0ncfOOX
Business News
1 Sep 14 00:42:50
$RAD: Rite Aid's (RAD) Key Sales Metrics for July Improved 4.6% http://t.co/AB69ad6ohf http://t.co/5RyB2pVdIE
Stock Market Monitor
31 Aug 14 23:42:56
$RAD: Why Rite Aid (RAD) Stock Is A 'Hold' At TheStreet http://t.co/xHCcGW17xA http://t.co/mrtklogpIp
Business News Watch
31 Aug 14 22:42:49
$RAD: Rite Aid Reports Same Store Sales for July http://t.co/i3YQ8raCLk http://t.co/RCh57UPLnp
Lizard Queen
31 Aug 14 22:01:32
$rad
Business Updates
31 Aug 14 18:42:48
$RAD: Rite Aid's (RAD) Key Sales Metrics for July Improved 4.6% http://t.co/sd0LNr5zno http://t.co/vWa66KBOdM
Financial Updates
31 Aug 14 16:42:53
$RAD: Rite Aid (RAD) Is Water-Logged And Getting Wetter Today http://t.co/ryLCLuRX7C http://t.co/gBc2F1cYfa
PierceCountyLibrary
31 Aug 14 13:11:17
RT @MisterMainSt: .@justaddmuscle @Stephanie_Link definitely potential in $RAD but their margins are very thin & balance full of debt
Business Headlines
31 Aug 14 11:42:49
$RAD: Is Now the Time to Buy Rite Aid Stock, or Should You Hold Off? http://t.co/dPJD5tSbOQ http://t.co/060ZdDGggD
StockGorillah
31 Aug 14 06:57:25
RT @MisterMainSt: .@justaddmuscle @Stephanie_Link definitely potential in $RAD but their margins are very thin & balance full of debt
Market Compass
31 Aug 14 04:42:47
$RAD: 3 Reasons for Rite Aid Corporation's Resurgence http://t.co/A2KoFOaE7m http://t.co/XAv0xQHEEc
Stock News Headlines
30 Aug 14 14:42:52
$RAD: Rite Aid Is Underperforming Walgreen, But The Stock Could Still Rise http://t.co/zaV6LSgEdi http://t.co/eEaP9yMbyp
Djae Outlaw
30 Aug 14 05:09:58
RT @MisterMainSt: $RAD dip is tempting but I think the stock moves lower first. Plenty of long term upside
Djae Outlaw
30 Aug 14 05:08:48
RT @MisterMainSt: $GM $MA $RAD and $WFM, which present the best long term value @Stephanie_Link ?
Djae Outlaw
30 Aug 14 05:08:01
RT @MisterMainSt: .@justaddmuscle @Stephanie_Link definitely potential in $RAD but their margins are very thin & balance full of debt
Jillian
29 Aug 14 22:46:48
@FrankReeberie and when we went to Los Angeles (opposite side of country) I used it over there too lol it's a baby retail giant. $RAD
Market Monitor
29 Aug 14 22:42:50
$RAD: Rite Aid July Sales Metrics Mostly Improved From June http://t.co/qIB0198LZf http://t.co/dZR5kSFP2j
Frank REeberie
29 Aug 14 22:39:51
@thinkenron $rad would hold for a few year IMO
Jillian
29 Aug 14 22:36:23
My FIL is VP of Merrill Lynch & was w Morgan Stanley 24yrs. He recommends $RAD to all his top clients. Do what u will w that info I'm long.
CChrisJones
29 Aug 14 22:24:23
RT @MisterMainSt: $RAD dip is tempting but I think the stock moves lower first. Plenty of long term upside
				
				
  +Follow September 19, 2013 11:33AM
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