NEW YORK (TheStreet) -- People around the world are living longer, owed to better medicines and a heightened social awareness of health and wellness. The global increase in life expectancy has been described as one of society's greatest achievements. And longer lives are good business for Rite Aid (RAD), the third-largest drugstore chain in the U.S. by annual revenue.
Rite Aid, headquartered in Camp Hill, Pa., will report first-quarter fiscal 2016 earnings Thursday before the opening bell. The company, which competes with larger rivals Walgreens Boots Alliance (WBA) and CVS Health (CVS), has made health and wellness its priority. And investors are eager to see the fruits of those efforts.
For the quarter that ended May, Rite Aid is projected to earn 3 cents per share, down from 4 cents last year, on revenue of $6.65 billion, up 3% year over year. For the full year ending in February, earnings are projected to be 26 cents per share, down from 42 cents last year, while revenue of $27 billion calls for a 3% increase year over year.
These numbers reflect Rite Aid's current restructuring efforts as it continues to nurse profits back to health, as explained by TheStreet's Jim Cramer.
To push its wellness store format, Rite Aid aims to remodel some 450 of its stores in 2015. The company, which operates roughly 4,500 U.S. stores, plans to drive more growth by expanding both its clinical services and its pharmacy business. The new model is showcased at its Harrisburg, PA, outlet -- a store that spans more than 14,500 square feet.