RAD: Rite Aid Stock Takes a Tough Tumble

Its first-quarter profit estimate fell short of forecasts

   

On Thursday, shares of Rite Aid (RAD) dropped almost 7% in morning trading after the drugstore chain lowered its earnings guidance for the year.

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RAD said it now expects to earn between 30 cents and 40 cents per share this year. That’s down from earlier RAD guidance that predicted a profit of between 31 cents and 42 cents per share, the Wall Street Journal notes.

Walgreens Increases Basket Size, Sales Go Up
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For the fiscal first quarter, RAD forecast a profit of 4 cents a share. That is well below the earnings of 8 cents per share that analysts had estimated.

Same-store sales during the first quarter climbed 3.1% over the prior year, with RAD pharmacy sales up 4.6% and front-end sales flat. RAD indicated that total sales at Rite Aid stores during the quarter were $6.43 billion, up 2.6% year-over-year.

RAD stock closed at $8.50 per share on Wednesday.

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Article printed from InvestorPlace Media, http://investorplace.com/2014/06/rad-rite-aid-stock-takes-tough-tumble/.

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