Rite Aid Trims Profit Forecast Again, but Results Should Improve

Shares of Rite Aid are falling in Thursday trading after the pharmacy chain trimmed its full-year profit forecast for the second time this year. The company cut its profit forecast for the year to $0.22 to $0.33 a share from $0.30 to $0.40 a share. Rite Aid also cut the top end of its sales forecast to $26.3 billion from $26.5 billion. Thomson Reuters analysts expected full-year profit of $0.34 a share on revenue of $26.3 billion. Credit Suisse analyst Edward Kelly said in a note, 'One-half to two-thirds of the miss looks temporary and it's clear results should improve in fiscal 2015.' He rates Rite Aid Outperform, but lowered his target price to $7 from $8.50.