Rite Aid Posts Less-Than-Expected Loss, Shares Jump

The pharmacy chain also lowered its sales outlook for fiscal 2013


Rite Aid (NYSE:RAD) posted a loss of $28.1 million during its fiscal first quarter. During the same period last year, the pharmacy chain lost $63.1 million.

EPS for the quarter showed a loss of 3 cents. That beat Wall Street, which was looking for a loss of 4 cents, Reuters noted. Revenue at the chain rose 1.2% to $6.5 billion for the first quarter. That also topped analysts’ revenue forecast of $6.42 billion.

prescription drugs 200x120 Rite Aid Posts Less Than Expected Loss, Shares Jump
CVS, Rite Aid Sue Pfizer, Teva Over Antidepressant

Investors were buoyed by the results, sending Rite Aid shares up 7.9% in Thursday midday trading.

Looking forward, Rite Aid said it anticipated a fiscal 2013 loss of between 13 cents and 29 cents a share. That was down slightly from a prior estimate of a loss between 13 cents and 31 cents a share. The company also pared its sales outlook for the year down from between $25.4 billion and $25.8 billion to between $25.3 billion to $25.7 billion.

The chain says a rising number of generic drugs will lower revenue as generics replace more expensive branded medications.

Article printed from InvestorPlace Media, http://investorplace.com/2012/06/rite-aid-posts-less-than-expected-loss-shares-jump/.

©2015 InvestorPlace Media, LLC

Comments are currently unavailable. Please check back soon.