Is Rite Aid's 23% Pop on Thursday Warranted?
Shares of Rite Aid (NYSE: RAD), a drugstore chain offering products for consumers' health and wellness, jumped as much as 23% higher Thursday morning after the company delivered a second-quarter earnings-per-share beat. Here's what investors need to know.
Rite Aid shares jumped this morning despite mixed top- and bottom-line results. More specifically, revenue fell 1% during the second quarter to $5.37 billion, just shy of analysts' estimates calling for $5.41 billion. While revenue was down, due in part to a lower store count, it was partially offset by a 2.7% increase in same-store prescription volume.
On the bottom line, adjusted earnings per share checked in at $0.12, well above analysts' estimates calling for $0.02 per share. Management also updated full-year guidance, narrowing its adjusted earnings-per-share range of breakeven to $0.56 per share, from the prior $0.14 per share loss to $0.72 earnings per share.
Source Fool.com
