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Rite Aid Posts Solid Earnings But Cannot Escape Sell-Off

By  +Follow June 20, 2013 9:27AM
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Rite AidIn what appears to be a testament to just how badly markets are reacting to Ben Bernanke’s guidance on Wednesday regarding the end of fiscal stimulus, Rite Aid Corp. (RAD), the third largest drug store chain the in U.S. posted its third straight profitable quarter only to be greeted by a 7 percent drop in share price heading into midday trading.

Fiscal 2013 was the company’s first profitable year since 2007, and Rite Aid expects to be profitable again in the current year. Profits for the most recently ended quarter were at $89.7 million, or $0.09 per share on revenue of $6.29 billion, compared to the prior year period during which the company lost $28 million, or $0.03 per share on revenue of $6.47 billion.

Revenue was down from the prior year due to the company’s increased sales of less expensive but more profitable generic drugs, but beat the average estimate of $6.27 billion, while the $0.09 EPS figure was in keeping with analyst forecasts.

Though the company said it should remain in the black for the current fiscal year, it also revised down its guidance from full-year earnings of between $0.04 and $0.19 per share to between $0.01 and $0.16 per share.

Same-store sales, otherwise known as sales for stores open for longer than one year, a key metric for the retail industry, were down 2.5 percent throughout the quarter, which could at least in part have something to do with the fact that Rite Aid closed some underperforming locations during the period.

The $2.64 billion market cap company competes with Walgreen Co. (WAG) and CVS Caremark Corporation (CVS) in the drugstore chain market, and has seen its stock perform incredibly well over 2013, advancing nearly 130 percent, and almost 200 percent over the past 6 months. Amid Thursday’s broad sell-off, however, shares dipped to as low as $2.87 apiece.

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
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
CChrisJones
29 Aug 14 22:23:37
RT @MisterMainSt: $GM $MA $RAD and $WFM, which present the best long term value @Stephanie_Link ?
CChrisJones
29 Aug 14 22:22:47
RT @MisterMainSt: .@justaddmuscle @Stephanie_Link definitely potential in $RAD but their margins are very thin & balance full of debt
One News Page
29 Aug 14 18:11:29
RT @MisterMainSt: $RAD dip is tempting but I think the stock moves lower first. Plenty of long term upside
One News Page
29 Aug 14 18:10:21
RT @MisterMainSt: $GM $MA $RAD and $WFM, which present the best long term value @Stephanie_Link ?
One News Page
29 Aug 14 18:09:45
RT @MisterMainSt: .@justaddmuscle @Stephanie_Link definitely potential in $RAD but their margins are very thin & balance full of debt
Stock News Guru
29 Aug 14 16:42:54
$RAD: Why Rite Aid (RAD) Stock Is Up Today http://t.co/6ssB6RwuiL http://t.co/IoMX3YdBI6
Mark
29 Aug 14 14:02:58
RT @MisterMainSt: $RAD dip is tempting but I think the stock moves lower first. Plenty of long term upside
Mark
29 Aug 14 14:02:05
RT @MisterMainSt: $GM $MA $RAD and $WFM, which present the best long term value @Stephanie_Link ?
Mark
29 Aug 14 14:01:12
RT @MisterMainSt: .@justaddmuscle @Stephanie_Link definitely potential in $RAD but their margins are very thin & balance full of debt
Brett Pudenz
29 Aug 14 13:13:11
@jimcramer is $RAD ever gonna turn it around?
Biz Headlines
29 Aug 14 12:42:58
$RAD: Is Now the Time to Buy Rite Aid Stock, or Should You Hold Off? http://t.co/j2e4Yc2mbl http://t.co/NE9H1DiwHh
Stockaholics
29 Aug 14 12:30:01
RSII shot up over 100% today! Major Update: http://t.co/GMnQioznZp $CWCO $RAD $HZNP
Stockaholics
29 Aug 14 12:15:53
RSII shot up over 100% today! Major Update: http://t.co/GMnQioznZp $INO $INNO $RAD
John Turner
29 Aug 14 12:01:45
$RAD Rite Aid Is Underperforming Walgreen, But The Stock Could Still Rise http://t.co/YhyNo0do8I
Market Headlines
29 Aug 14 11:42:55
$RAD: Rite Aid July Sales Metrics Mostly Improved From June http://t.co/L9TsuZ2tb0 http://t.co/ggmsTJLsZd
Jeffrey Blake
29 Aug 14 11:31:31
$RAD 3 Reasons for Rite Aid Corporation's Resurgence http://t.co/VAs6GQkm5O
Michael Torres, PhD
29 Aug 14 09:05:29
RT @BlockTradeAlert: BLOCK TRADE: $RAD 250,000 shares @ $6.29 [12:03:56]
BlockTradeAlert
29 Aug 14 09:03:57
BLOCK TRADE: $RAD 250,000 shares @ $6.29 [12:03:56]
Market Compass
29 Aug 14 06:43:00
$RAD: Rite Aid Encourages Customers to Shield Themselves from the Flu http://t.co/pB4asCEXRd http://t.co/wXZOTE77Pz
Business News Watch
29 Aug 14 05:42:58
$RAD: Why Rite Aid (RAD) Stock Is Up Today http://t.co/tAjU9wTkui http://t.co/ex0CRfUEvm
Jillian
29 Aug 14 01:30:53
Next couple weeks will be very telling for $EXEL.Slowly trying to build a nice position in $PCRFY. Elon Musk = cha ching! Still holding $RAD
Business News Now
28 Aug 14 23:42:52
$RAD: Why Rite Aid (RAD) Stock Is Up Today http://t.co/eTIv6h1D7K http://t.co/gCeRVqltsE
				
				
By  +Follow June 20, 2013 9:27AM
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