NEW YORK (TheStreet) -- Rite Aid (RAD) shares are up 2.8% to $7.35 in trading on Tuesday as the national retail drugstore chain benefits from rival Walgreen's (WAG) better than expected first quarter earnings results.
Rite Aid received a bump from its own earnings results yesterday following its earnings conference call. The company reported a 5.4% increase in same store sales during the third quarter that was fueled by a 4.5% increase in same store prescription count.
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Deerfield, IL-based Walgreen beat analysts' first quarter earnings expectations, citing strong prescription sales as the reason for the beat.
The company reported first quarter earnings of 81 cents per diluted share, six cents better than the 75 cents per share analysts were expecting for the period. Walgreen also reported a 6.8% rise in revenue to $19.55 billion which came out just ahead of analysts' $19.50 billion expectations.
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, solid stock price performance and growth in earnings per share. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow and poor profit margins."