Key Takeaways from Rite Aid’s 2Q17 Results
Snapshot of the series
Rite Aid (RAD) reported results for 2Q17 on Thursday, September 28, 2017. The results relate to the three-month period ending September 2, 2017. The Pennsylvania–based pharmacy chain reported in-line earnings but missed on Wall Street revenue forecasts. It reported a loss of one cent per share on total sales of $7.7 billion. Read the next three parts of this series to know more about the company’s 2Q17 performance.
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Rite Aid’s stock price plunged 11% after results. It closed at $2.03 on September 28, touching its four-year low. Read part five of the series to know about the company’s year-to-date stock market performance.
About Rite Aid
Rite Aid is America’s third largest pharmacy retail chain, following CVS Health (CVS) and Walgreens Boots Alliance (WBA). Recently, Walgreens acquired 1,932 Rite Aid stores along with its three distribution centers for $4,375 million. The deal is expected to close by the spring of 2018. All acquired Rite Aid stores will be converted into Walgreens stores in a phased manner. Rite Aid now operates close to 2,700 stores in the US.
Eight Wall Street analysts cover the company. Seven of them have given a “hold” recommendation on the stock, while one analyst has suggested a “buy.”
Investors looking for exposure in Rite Aid through ETFs can choose to invest in the First Trust Consumer Staples AlphaDEX Fund (FXG), which invests 1.2% of its portfolio in the company.