Why Rite Aid (RAD) Ended the Week Nearly 12% Lower

NEW YORK (TheStreet) -- Rite Aid (RAD) shed further share value during Friday's trading session, ending the week nearly 12% lower than the previous week's close. On Friday alone, the pharmacy chain was off 4.6% to $4.93.

The losses come a day after the Camp Hill, Penn.-based business reported third-quarter net income of 7 cents a share on revenue of $6.35 billion.

While earnings beat consensus, the company downwardly-revised its projected earnings to between 17 cents and 23 cents a share from previous guidance of 18 cents to 27 cents a share. Analysts polled by Yahoo! Finance had expected 23 cents a share for the fiscal year.

TheStreet Ratings team rates Rite Aid Corp as a Hold with a ratings score of C. The 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."

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