NEW YORK (TheStreet) -- Rite Aid Corp.(RAD) - Get Report shares are jumping 1.14% to $7.99 in Thursday's pre-market trading session following the drugstore operator's third quarter 2016 earnings results.
Profits were in line with expectations while revenue missed.
For the latest quarter ended November 28, the company earned 6 cents a share on revenue of $8.15 billion.
Wall Street was anticipating the company to deliver earnings of 6 cents a share on revenue of $8.18 billion.
During the same quarter the year prior, the company earned 10 cents a share on revenue of $6.69 billion.
"We are pleased with our results for the third quarter, which reflect growth in revenue, same-store sales and Adjusted EBITDA along with positive, significant contributions from our new Pharmacy Services Segment," said CEO John Standley.
Year-over-year, pharmacy same-store sales increased 1.2% however, profit was impacted by expenses related to EnvisionRX, the pharmacy benefit manager which Rite Aid purchased for around $2 billion in June, the company stated.
In October, Walgreens Boots Alliance (WBA) agreed to buy Rite Aid for about $9.4 billion, bringing together two drugstore giants.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
We rate RITE AID CORP as a Hold with a ratings score of C. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its notable return on equity, revenue growth and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, generally higher debt management risk and poor profit margins.
You can view the full analysis from the report here: RAD