Including expenses related to debt redemption, quarterly earnings came in at 2 cents per share, down 84.6% year over year. Finally, Deutsche Bank restated a “buy” rating and set a $10.00 price objective on shares of Rite Aid in a research report on Wednesday, June 17th.
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In other Rite Aid news, EVP Tony Montini sold 353,194 shares of the stock in a transaction on Thursday, July 9th.
John Standley the CEO at Rite Aid said it would be a tough year for the reimbursement for the company during a conference call with analysts. Retail Pharmacy Segment revenues were $6.6 billion and increased 1.9 percent primarily as a result of an increase in same store sales.
The miss on profits and the overall lowering of full-year forecasts will put plenty of downward pressure on Rite Aid’s shares Thursday. The company reported $0.02 earnings per share for the quarter, missing analysts’ consensus estimates of $0.03 by $0.01. The standard deviation of short term price target has been estimated at $0.75, implying that the actual price may fluctuate by this value.
Rite Aid Corp (NYSE:RAD) stock is now trading 19.11% below its 52-week-high, 73.3% above its 52-week-low.
Rite Aid fell 5.8 percent to $8.09 at 9:35 a.m.in New York.
Rite Aid Corporation (NYSE:RAD) stock price dipped significantly on Thursday after the company released its earnings for the second quarter of the fiscal year 2016 (2QFY16). After the session commenced at $8.63, the stock reached the higher end at $8.64 while it hit a low of $8.35. The research firm has set a target price of $9, with a return of 17.5% at a closing price of $7.66. The consensus target price stands at $10.04.
Rite Aid gapped open sharply lower Thursday morning and is now down 0.70 at $7.89 on above average volume. The number of prescriptions filled in same stores rose 0.2 percent year-over-year. The 1-year stock price history is in the range of $4.42 – $9.47.
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Though it would take some digging, most investors – professional and amateur alike – will do the same math done above and sooner or later recognize the drugstore chain is doing reasonably well now that the EnvisionRx integration has been completed. The Company sells prescription drugs and a range of other merchandise, which are referred to as front-end products. The company has expanded its RediClinics and remodeled almost 120 wellness stores, which provide natural personal-care options and organic food and feature consultation space for discussions with pharmacists. It operates about 4,570 stores in 31 states across the country and in the District of Columbia. The Company offers a variety of products through its portfolio of brands that are private. Since the beginning of Rite Aid’s recovery in December of 2012, this marks the first time that Rite Aid’s same-store sales growth has exceeded Walgreens, and given the year-over-year growth of EnvisionRX, this performance suggests that Rite Aid could continue to outgrow Walgreens organically moving forward.
