While the drugstore operator reported a slight increase in revenue from the year-ago quarter, Rite Aid cut estimates for its fiscal year. The company now expects estimated earnings of between 17 cents and 23 cents per share for the fiscal year as opposed to the previous estimates of 18 cents to 27 cents per share.
Rite Aid increased revenue estimates for the year to between $25.3 billion and $25.425 billion from between $25.1 billion and $25.3 billion.
Shares of Rite Aid stock were down today by $0.59 (10.24%) as of the close of trading. By the end of trading, 69.40 million shares of RITE AID CORP exchanged hands as compared to its average daily volume of 29.23 million shares. The stock ranged in price between $5.14 to $5.44 after opening the day at $5.43 as compared to the previous trading day's close of $5.76. Overall, RITE AID CORP lagged the S&P 500 which was down 0.06%. Important items of note for RITE AID CORP and possible rationale for parts of today's stock move go as follows:
TheStreet Ratings team rates RITE AID CORP as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate RITE AID CORP (RAD) a HOLD. 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 revenue growth, good cash flow from operations and solid stock price performance. However, as a counter to these strengths, we find that the company's profit margins have been poor overall."