Stocks in Motion: Rite Aid

Updated from 1:29 p.m.

Shares of Rite Aid(RAD Quote - Cramer on RAD - Stock Picks) were among NYSE losers Tuesday after the company warned that 2005 earnings and sales would fall short of expectations.

The drugstore chain now expects full-year income of $122 million to $150 million, or 16 cents to 22 cents a share, vs. its previous forecast of income between $121 million and $167 million. Sales, meanwhile, are now expected to be between $16.9 billion and $17 billion, down from Rite Aid's previous guidance of between $17.1 billion and $17.3 billion. Analysts surveyed by Thomson First Call had been expecting earnings of 28 cents a share on sales of $17.4 billion. Rite Aid cited slowing pharmacy sales growth and slower third-party reimbursement rates for the lowered guidance. Shares of Rite Aid traded down 85 cents, or 18.7%, to $3.70.

Fleetwood Enterprises(FLE Quote - Cramer on FLE - Stock Picks) rose after it posted better-than-expected first-quarter earnings. The manufacturer of recreational vehicles posted first-quarter earnings of 12 cents a share on sales of $727.8 million. Analysts were expecting earnings of 6 cents a share on sales of $739.6 million. Looking ahead, Fleetwood expects to show a profit during the second quarter and full year, with both periods above the year-ago results. Shares of Fleetwood traded up $1.66, or 12.4%, to $15.

Shares of Hovnanian Enterprises(HOV Quote - Cramer on HOV - Stock Picks) rose after the company posted better-than-expected third-quarter earnings and raised its full-year earnings guidance above Wall Street estimates. Excluding items, the luxury homebuilder posted third-quarter earnings of $1.46 a share on sales of $1.1 billion. Analysts were expecting earnings of $1.35 a share on sales of $1.14 billion. Looking ahead, the company said that excluding items it expects full-year earnings to exceed $5.50 a share on sales of $4.1 billion. Analysts are expecting earnings of $5.10 a share on sales of $4.2 billion. Shares of Hovnanian traded up $3.27, or 9.3%, to $38.50.