Rite Aid Rises on Earnings

National drug-store chain Rite Aid(RAD Quote) reported an increase in fourth-quarter profit, beating analysts' consensus by a penny. The company also confirmed its full-year 2005 earnings guidance, which helped send its shares upward in Thursday trading.

The company earned $59.1 million, or 9 cents a share, in the quarter ended Feb. 28, compared with net income of $7 million, which came out to a loss of 2 cents a share after preferred dividends, in the year-earlier period. Analysts had been expecting earnings of 8 cents a share in the most recent quarter. Rite Aid said profit improved thanks to a 21.8% increase in adjusted earnings before interest depreciation, taxes and amortization as well as a $56.2 million reduction in store closing and impairment charges.

Adjusted EBITDA was $216.8 million, or 4.9% of revenue, compared with $178.1 million, or 4.3% of revenue, a year ago. ...