NEW YORK (TheStreet) -- Rite Aid (RAD) , the third-largest U.S. drugstore chain, posted better-than-expected quarterly earnings on Thursday and increased its full-year guidance after the company had trimmed it twice this year.
Greater prescription drug sales lifted Rite Aid's profit and revenue higher in the third quarter. Rite Aid also posted 5.4% comparable-store sales growth.
TheStreet's Jim Cramer says Rite Aid has long been a recommendation of his. He notes a problem the company had with reimbursement from a generic provider, but Rite Aid maintained it was a timing issue and that the business would come back. Cramer says no one believed them, but it turned out to be true.
Cramer says people were looking for earnings of 5 cents, but they delivered 10 cents. He says the stock is not done going higher.
Rite Aid was up 13.6% to $6.88 at 1:31 p.m. More than 76.4 million shares had changed hands, compared to the daily average volume of 25,467,800.RAD data by YCharts