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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.

rite aid 630
Source: Flickr

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
Walgreens Increases Basket Size, Sales Go Up

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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