Rite Aid Takes Hit From Walgreen - TheStreet

Rite Aid Takes Hit From Walgreen

Rite Aid is falling ahead of its earnings report and Walgreen's disappointing results.
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NEW YORK (

TheStreet

) --

Rite Aid

(RAD) - Get Report

is in the red ahead of its first-quarter earnings report due out tomorrow, after

Walgreen

(WAG)

reported disappointing numbers earlier today.

Rite Aid hasn't been profitable for years, and analysts are calling for a loss of 14 cents a share on revenue of $6.4 billion in the first quarter. In the same quarter last year, the No. 3 drugstore lost $98.4 million, or 11 cents a share.

Rite Aid has already said it expects a full-year loss between $355 million and $570 million, or 41 cents to 65 cents a share.

The drugstore has previously said that it plans to shutter about 80 stores this year, on top of the 300 locations it has closed over the last two years. But that number could rise depending on just how bad first-quarter results turn out.

Walgreen posted a surprise 11% decline in its third-quarter earnings

to $463 million, or 47 cents a share. Sales rose 6% to $17.2 billion, while same-store sales inched up 0.7%.

Walgreen attributed the drop to charges related to the purchase of Duane Reade, milder cold and flu season and health-care reform expenses. As a result, shares of Walgreen are tanking 6.2% to $28.26 and dragging down shares of Rite Aid along with it.

Rite Aid plunged more than 8% in Tuesday trading, before recovering slightly. The stock is currently down 3.9% to $1.

-- Reported by Jeanine Poggi in New York.

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