RAD: Rite Aid Stock Soars on Healthy Earnings

by Burke Speaker | April 10, 2014 9:48 am

RAD: Rite Aid Stock Soars on Healthy Earnings

Rite Aid stock (RAD[1]) have soared after its adjusted earnings and fiscal year revenue guidance beat analyst expectations.

rite aid stock 300x239 RAD: Rite Aid Stock Soars on Healthy Earnings[2]Though its fiscal fourth-quarter earnings fell 55%, Rite Aid said this was due to one-time inventory-accounting adjustments.

Rite Aid reported earnings of $55.4 million (6 cents a share) last quarter, compared to $123.1 million (13 cents a share) a year earlier.

RAD stock is up 13.75% in early morning trading.

Rite Aid stock is also up due to its coming year projections.

Via MarketWatch:[3]

For the new fiscal year, the company forecast per-share earnings of 31 cents to 42 cents and revenue of $26 billion to $26.5 billion. Analysts polled by Thomson Reuters expected per-share profit of 35 cents and revenue of $25.75 billion.

Rite Aid last month reported that total drugstore sales increased 2.2% to $6.57 billion and that same-store sales rose 2.1%. In the front of the store, same-store sales edged down 0.7%, while they increased 3.5% in the pharmacy section.

Rite Aid also announced its acquisition of the Texas-based RediClinic[4] — stating it was looking to add more clinics to its existing markets.

RAD stock is up 42% year to date.

More Drug Store News

Endnotes:
  1. RAD: http://studio-5.financialcontent.com/investplace/quote?Symbol=RAD
  2. [Image]: http://investorplace.com/wp-content/uploads/2014/04/rite-aid-stock.jpg
  3. Via MarketWatch:: http://www.marketwatch.com/story/rite-aid-shares-surge-as-earnings-top-estimates-2014-04-10?link=MW_latest_news
  4. acquisition of the Texas-based RediClinic: http://investorplace.com/2014/04/rad-rite-aid-acquires-rediclinic/

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