Jim Cramer: Rite Aid Earnings Prove its Business Model Is Strong

TheStreet's Jim Cramer says Rite Aid is not done going higher. The third largest U.S. drugstore chain reported better-than-expected quarterly earnings Thursday. Rite Aid raised its full-year earnings forecast after cutting it twice this year. Higher sales of prescription drugs helped pushed its profit and revenue higher in the third quarter. Cramer says the company's earnings of 10 cents per share doubled his estimate of 5 cents per share. He also likes their 5.4% growth in same-store sales. Cramer adds that Rite Aid's generic drug reimbursement issue was only a temporary setback and that management had stressed the business would come back. Now it has. Cramer says today is a validation that the business model is very strong and that the concerns were unfounded.