Why Rite Aid (RAD) Stock is Down Today

NEW YORK (TheStreet) -- Rite Aid  (RAD) continued to decline Monday after the drugstore chain reduced its guidance for its first quarter and fiscal year last week.

Rite Aid now expects net income between $35 million and $45 million and adjusted earnings of 4 cents a share for the quarter that ended in May. Analysts surveyed by Thomson Reuters expected net income of $76 million and earnings of 8 cents a share. 

The company also reduced its EPS guidance for fiscal 2015 to a range of 30 cents to 40 cents, down from its previous estimate of 31 cents to 42 cents.

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The stock was down 3.5% to $7.45 at 1:23 p.m.

Separately, 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 and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, poor profit margins and weak operating cash flow."

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