Why Rite Aid (RAD) Stock Is Slipping Today

NEW YORK (TheStreet) -- Rite Aid (RAD) stock is trading slightly lower on Thursday after reporting first-quarter earnings half what they were a year earlier, while reaffirming its outlook for fiscal 2015. Wall Street had hoped the company might raise guidance. By midmorning, shares had slipped 2.3% to $7.27.

Over the three months to May, the drugstore chain reported net income of $41.4 million, or 4 cents a share, compared to $89.7 million, or 9 cents a share, in the year-ago quarter. Revenue climbed 2.7% to $6.5 billion, driven by pharmacy same-store sales. Both measures were as analysts surveyed by Thomson Reuters expected. 

Rite Aid confirmed its previous fiscal 2015 guidance of sales between $26 billion and $26.5 billion and earnings of 30 cents to 40 cents a share. Analysts forecast revenue of $26.2 billion and earnings of 35 cents a share. 

Must ReadWarren Buffett's 25 Favorite Stocks 

--------------

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."

If you liked this article you might like

10 Favorite Healthcare Stocks for 2018: Medical Marijuana to Opioid Treatment

10 Favorite Healthcare Stocks for 2018: Medical Marijuana to Opioid Treatment

David Einhorn Hopes for Better 2018 With New Time Warner, Twitter Bets

David Einhorn Hopes for Better 2018 With New Time Warner, Twitter Bets

Here's Who Might Be on Amazon's M&A Shopping List in 2018

Here's Who Might Be on Amazon's M&A Shopping List in 2018

The January Effect Could Push Up Some Stock Prices

The January Effect Could Push Up Some Stock Prices

MoneyGram, Car Sales and More Records for Wall Street - 5 Things You Must Know

MoneyGram, Car Sales and More Records for Wall Street - 5 Things You Must Know