NEW YORK (TheStreet) -- Shares of Rite Aid Corp. (RAD) are lower by 3.87% to $8.57 in pre-market trading on Thursday morning, after the retail drugstore company reported a rise in same store sales for the fiscal 2016 first quarter that missed analysts' forecasts.
The pharmacy chain said same store sales for the quarter ended May 2015 grew by 2.9%, missing the 3.8% increase analysts polled by Consensus Metrix were expecting.
Rite Aid posted net earnings of 4 cents per diluted share, one cent better than analysts had predicted.
Revenue for the latest quarter was $6.6 billion, in-line with the $6.65 billion analysts were looking for.
"We generated these positive results while also making significant strategic investments to continue our transformation into a retail healthcare company," Rite Aid CEO John Standley said in a statement.
Separately, 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 notable return on equity, revenue growth and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and weak operating cash flow."
You can view the full analysis from the report here: RAD Ratings ReportRAD data by YCharts