NEW YORK (TheStreet) -- Rite Aid (RAD) shares are up 16.17% to $7.04 in early market trading on Thursday after the company reported its third quarter earnings results before the opening bell today.
The Camp Hill, PA-based drugstore retail chain reported third quarter net income of $104.9 million, a 46.5% increase from the same quarter last year, or 10 cents per share on an adjusted basis. The company also generated $6.69 billion in revenue which is a 5.3% increase over the previous year.
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Analysts on average were expecting the company to report earnings of 5 cents per share on revenue of $6.65 billion.
The company raised its full year earnings expectations as a result of the strong quarter. It now expects to see earnings between 31 cents and 37 cents per share, up from its previous view of between 22 cents and 33 cents per share, with same store sales growth now forecast between 3.75% and 4.25% from the previous view of 3% to 4% growth.
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 growth in earnings per share. However, as a counter to these strengths, we also find weaknesses including relatively poor performance when compared with the S&P 500 during the past year and poor profit margins."