Rite Aid Corp
Amazon Challenges Walgreens and CVS Health Again
Amazon (AMZN) recently began letting customers use funds in their special healthcare savings account to pay for purchases of eligible products on its marketplace, the company confirmed to CNBC.
How Investors Reacted to Walgreens’s Fourth-Quarter Results
Walgreens stock has fallen 2.4% YTD (year-to-date). It fell ~10% after Amazon announced the acquisition of Pillpack in June.
Walgreens: Key Revenue Drivers in Fourth Quarter of Fiscal 2018
Walgreens’s Retail Pharmacy USA division accounted for 76% of fourth-quarter sales and increased 14.4% YoY to $25.5 billion.
Walgreens Stock Rises as RBC Increases Price Target 20%
RBC Capital Markets raised the price target for Walgreens Boots Alliance (WBA) from $68 to $82 (or ~20%) on Monday, October 8.
Walgreens’s EPS to Rise 11% in Q4 2018
Wall Street expects a 10.7% year-over-year jump in Walgreens Boots Alliance’s (WBA) EPS to $1.45 during the fourth quarter of fiscal 2018.
Rite Aid Reports in-Line EPS in the Second Quarter
Rite Aid (RAD) reported a second-quarter adjusted net loss from continuing operations of $7.9 million or $0.01 loss per share.
Rite Aid Finally Posts Top-Line Growth in the Second Quarter
Rite Aid (RAD) reported results for the second quarter—which ended on September 1—yesterday. The company’s top line from continuing operations improved 1.4 % YoY (year-over-year) to $5.42 billion.
After Two Failed Mergers, Where Does Rite Aid Stand Now?
Struggling with the company’s financial position, Rite Aid’s management has tried to sell the company’s assets since 2015.
Why Are Rite Aid’s Margins Deteriorating?
Rite Aid Corporation (RAD) is expected to post an adjusted loss of 1 cent per share when it reports its second-quarter 2019 results on September 27.
Strong Q2 2018 Results Cushion CVS Health’s Falling Share Price
CVS Health’s (CVS) better-than-expected second-quarter results managed to please investors.
Rite Aid Terminated Its Merger Agreement with Albertsons
On August 8, Albertsons and Rite Aid (RAD) announced that they mutually terminated their merger agreement, which was announced in February.
Rite Aid Stock Fell Due to Lower Fiscal 2019 Outlook
Rite Aid (RAD) stock took a hit on August 6 after management updated the fiscal 2019 profit outlook.
How Pharmacies and Drugstores Are Defending against Amazon
Amazon’s (AMZN) purchase of PillPack is expected to pose a threat to existing players in the pharmaceutical space.
Walgreens Reports 14% Sales Growth in Fiscal Third Quarter
Walgreens’s fiscal third-quarter top line increased 14% YoY to $34.3 billion. On a constant currency basis, sales rose 11.8% YoY.
Rite Aid’s Fiscal Q1 2019 Beat Drives Its Stock After Hours
Rite Aid’s (RAD) better-than-expected results drove its stock by 1.5% in the post-trading session on June 27.
Discussing Rite Aid’s Fiscal Q1 2019 Margins
Rite Aid (RAD) reported adjusted net income from continuing operations of -$11.5 million, or -$0.01 per share, in the fiscal first quarter of 2019.
What Drove Rite Aid’s Fiscal Q1 2019 Sales Down?
Rite Aid’s Retail Pharmacy segment recorded a 1.9% YoY sales fall during the fiscal first quarter of 2019.
Here’s Why Rite Aid Fell 7% Yesterday
Rite Aid stock tumbled 7% yesterday after the company issued a letter that asked shareholders to vote in favor of the pending merger with Albertsons.
Analysts Aren’t So Sure about Rite Aid Stock
After a disastrous 2017, Rite Aid stock has managed to stay in the green so far this year.
What’s behind Rite Aid’s Deteriorating Margins?
Rite Aid has witnessed a continuous deterioration in its profitability over the years.
What Are Rite Aid’s Key Revenue Drivers?
Rite Aid (RAD) is projected to report a 31.6% YoY (year-over-year) decline in total sales to $5.3 billion.
What to Expect from Rite Aid’s Q1 2019 Results
Rite Aid stock has risen a moderate 2.2% this year after falling 76% last year. Wall Street, however, expects some recovery in the stock price this year.
Rite Aid’s Top Line Fell for 4th Straight Quarter in Fiscal 4Q18
Rite Aid’s (RAD) top line for fiscal 4Q18 fell 8.6% YoY to $5.4 billion, missing the average consensus expectation by $180 million.
How Wall Street Views Rite Aid Stock ahead of 4Q18 Results
Rite Aid’s stock has plunged around 18% this year after falling 76% last year.
SuperValu Has Decided to Sell Farm Fresh
SuperValu (SVU) announced on March 14 that it’s selling 21 of its 38 Farm Fresh stores to three grocery store chains.
Walgreens and AmerisourceBergen End Talks without a Deal
According to a report by CNBC, talks between Walgreens Boots Alliance (WBA) and AmerisourceBergen Corp. (ABC) ended without an agreement.
How the Drug Store Industry Is Changing
The top three drugstore chains in the US are in the process of forming new associations through mergers and acquisitions to create a more diversified portfolio and protect themselves from the growing online threat.
Analyzing the Synergies that Could Come from the Albertsons-Rite Aid Deal
Albertsons Companies is planning to rebrand its existing pharmacies (excluding Jewel Osco) as Rite Aid stores.
Albertsons-Rite Aid Deal: What to Expect from Combined Entity
The proposed transaction would create a company that is projected to generate $83 billion in total sales and ~$3.7 billion (including run rate cost synergies) in adjusted EBITDA during the first year.
Albertsons Proposes Merger with Rite Aid
On February 20, 2018, privately held Albertsons announced its intention to merge with Rite Aid (RAD), one of America’s leading drugstore chains.
Privately Held Albertsons Companies to Merge with Rite Aid
Privately held grocery chain Albertsons Companies announced its merger with drugstore chain Rite Aid (RAD) on February 20, 2018.
Would Acquiring AmerisourceBergen Make Sense for Walgreens?
Why would Walgreens acquire AmerisourceBergen? As discussed, The Wall Street Journal recently reported that Walgreens Boots Alliance (WBA) is in acquisition talks with AmerisourceBergen (ABC). The deal, if proposed and completed, would combine America’s largest pharmacy chain (by drugstore count) with one of the largest drug distributors in the country. The significant deal would further consolidate […]
Walgreens’s US Pharmacy Sales Strong, Retail Sales Still Soft
Walgreens Boots Alliance’s (WBA) 1Q18 top-line growth was driven by strong performances from all three of its divisions.
Walgreens Delivers Strong Top-Line Growth in 1Q18
As we’ve discussed, Walgreens Boots Alliance (WBA) reported its 1Q18 results on January 4. The company’s top line increased 7.9% YoY (year-over-year) to $30.74 billion.
Walgreens Beats 1Q18 Sales and Earnings Expectations
Walgreens Boots Alliance (WBA) reported its results for 1Q18 on Thursday, January 4. The results relate to the three-month period ending November 30, 2017.
Wall Street’s Take on Rite Aid after 3Q17 Results
Wall Street kept its stance unchanged on Rite Aid (RAD) after its third-quarter results. Evercore ISI, however, initiated coverage on the company on January 5 with an “underperform” rating.
Stock Watch: No Respite for Rite Aid’s Shareholders
As we discussed throughout this series, Rite Aid (RAD) reported better-than-expected quarterly profits on January 3. However, the third quarter results couldn’t stop the slide in the company’s stock price.
Depressed Retail Pharmacy Gross Profit Impacts Rite Aid’s 3Q17
Rite Aid Corporation (RAD) reported third-quarter results on January 3. The company’s adjusted net earnings from continuing operations stood at $1.6 million, or $0.00 per diluted share, compared to $26.8 million or $0.03 per diluted share during the same period last year.
Rite Aid’s 3Q17 Top Line Drivers
As we outlined in the previous part of this series, Rite Aid (RAD) reported a 5.6% YoY (year-over-year) fall in revenue from continued operations to $5.35 billion during the third quarter of 2017.
Rite Aid’s Top Line Plunges for the 3rd Straight Quarter in 3Q17
Rite Aid (RAD) reported its 3Q17 results after the market closed on January 3. The company’s top line plunged 5.6% YoY (year-over-year) to $5.35 billion (excluding discontinued operations).
Rite Aid’s 3Q17 Results: A Quick Look
Rite Aid Corporation (RAD) reported results for 3Q17 on Wednesday, January 3. The results relate to the three-month period ending December 2, 2017.
Deal of the Year: CVS to Buy Aetna for $69 Billion
CVS Health (CVS), America’s largest pharmacy chain, announced a $69 billion deal to purchase Aetna (AET), the country’s third-largest insurance company, on December 3, 2017.
Rite Aid Added Apple Pay for Online Payments
US-based (SPY) drugstore chain Rite Aid (RAD) announced that it was adding Apple’s (AAPL) Apple Pay as a payment option for online purchases.
Key Risks Facing PetMed Express in 2017
PetMed Express (PETS) stock has risen 77% in the last one-year period, reaching a high of $50.06 on July 26, 2017.
New Customer Acquisition Drives Revenue Growth for PetMed Express
In 2017, the PetMed Express (PETS) website attracted ~32.0 million visitors, ~8.0% of whom placed an order for a conversion ratio of ~25.0%.
Analysts’ Recommendations for PetMed Express and Peers in 2017
Of the five analysts covering PetMed Express (PETS) in October 2017, two gave it “strong buy” ratings, two gave it “hold” ratings, and one gave it a “sell” rating. Its target price was $43.75.
CVS Health May Vertically Integrate Further by Acquiring Aetna
With trailing 12-month sales of $181 billion, CVS Health is a pharmacy colossus. However, its focus seems to be on becoming more than just a retail pharmacy chain.
Walgreens: Strong 4Q17 Results Support the Falling Stock Price
Walgreens Boots Alliance’s strong 4Q17 results were received well by the market. The company’s stock price rose 3% and closed at $69.36 on October 25.
Can Walgreens Exceed Analyst Expectations in Fiscal 4Q17?
Walgreens Boots Alliance (WBA) is slated to release its fiscal 4Q17 earnings on October 25. WBA’s total sales are expected to reach $29.6 billion, a 4.6% increase over its fiscal 4Q16 sales.
CVS versus Walgreens: Which Has a More Diversified Business Model?
CVS generates close to 70% of its annual sales by offering a full range of pharmacy benefit management services.
Walgreens versus CVS: Comparing Pharmacy Giants
The US drugstore market is dominated by two major players—CVS Health (CVS) and Walgreens Boots Alliance (WBA). CVS and WBA accounted for ~29% of the country’s prescription dispensing revenues in 2016.
Stock Price and Valuation Trends for Food and Drug Retailers
The stock prices of Target and CVS Health rose seven sessions in a row, from June 15–June 23. The pharmacy sale announcement by both companies resulted in a positive reception by the markets.
Walgreens, Rite Aid, CVS Tumble on the Amazon Scare
Three months after its Whole Foods acquisition, Amazon is making waves again with rumors that it is eying the prescription drug distribution business.
Rite Aid Stock Has Upside of 24% in the Next 12 Months
Rite Aid’s stock crashed 11%, touching a four-year low after the company missed revenue expectations and reported weak sales comps on September 28.
One-Time Termination Fees Boost Rite Aid’s Reported Earnings
Rite Aid (RAD) reported 2Q net earnings of $170.7 million, or 16 cents per share.
What Drove Rite Aid’s 2Q17 Revenue Decline?
As outlined in the previous section, Rite Aid (RAD) reported a 4.4% YoY (year-over-year) decline in total sales to $7.7 billion during 2Q17.
How Walgreens and Rite Aid Can Benefit from their Deal
As we’ve discussed in this series, Walgreens received FTC (Federal Trade Commission) approval to acquire 1,932 Rite Aid store on September 19.
Rite Aid Loses 12% after the FTC Nod for Walgreens Deal
The stock price for Rite Aid (RAD) plunged more than 12% after the announcement of the deal closure with Walgreens on September 19.
A Look at Rite Aid’s Stock Crash This Year
Rite Aid’s shareholders have been the real losers from the delay and eventual termination of the deal between Rite Aid (RAD) and Walgreens Boots Alliance (WBA) in October 2015.
Status Update: The Walgreens–Rite Aid Acquisition Deal
According to Bloomberg, Walgreens Boots Alliance (WBA) and Rite Aid (RAD) have moved toward closing their long-awaited acquisition deal.
Here’s Why Rite Aid’s Margins Have Deteriorated over the Years
Rite Aid’s profitability has worsened over the years. Its gross margin has fallen from 29.0% in fiscal 2013 to just 22.6% in the first quarter of the current fiscal year.
Rite Aid Ready to Report 2Q17 Earnings: What to Expect
Rite Aid (RAD) is slated to release its fiscal 2Q17 results on Thursday, September 28, 2017. Its EPS (earnings per share) is projected to fall to zero from last year’s $0.01.
Behind Einhorn’s Top Sells in 1Q17
As of March 31, 2017, the top selling in billionaire investor David Einhorn’s portfolio included Apple, Time Warner, Rite Aid, and AerCap Holdings.
The WBA-RAD Deal Drama Has Hurt Both Companies’ Stocks
On June 29, 2017, Walgreens Boots Alliance (WBA) and Rite Aid (RAD) announced that they have a new definitive agreement.
Rite Aid, Fred’s, and Walgreens Rose Due to Possible Deal Closure
Rite Aid, Fred’s, and Walgreens Boots Alliance’s stock prices rose on June 26. The Rite Aid-Walgreens merger might be getting close to a conclusion.
Wall Street Sees a 22% Upside in Walgreens
Walgreens is covered by 25 Wall Street analysts. The company has received a rating of 2 on a scale of 1 (strong buy) to 5 (sell). It has 72% “buy” and 28% “hold” recommendations and no “sell” recommendations.
The FTC Might Be Looking to Block the WBA-RAD Merger
According to a recent report from The Capital Forum, the FTC is set to block the pending merger of Walgreens Boots Alliance (WBA) and Rite Aid (RAD).
Walgreens on the Street: What the Analysts Say after Fiscal 2Q17
Wall Street’s reaction to WBA’s second quarter results While Walgreens (WBA) delivered mixed 2Q17 results, CEO (chief executive officer) Stefano Pessina’s optimism about the pending Rite Aid (RAD) deal has been well received by the analyst community. John Heinbockel of Guggenheim maintained a “buy” rating on WBA, issuing a price target of $100. While Heinbockel […]
Walgreens, Rite Aid, and Fred’s: The Shifting Landscape
WBA’s CEO, Stefano Pessina, said that he remains positive about the Rite Aid deal, which has been waiting for FTC approval for more than a year.
Walgreens’ Fiscal 2Q17 Earnings Overview: Revenue Miss, In-Line EPS
WBA’s fiscal 2Q17 EPS stood at $1.36, in line with estimates. Its top line, however, missed the consensus estimate, falling 2.4% YoY to ~$29.5 billion.
Wall Street Optimistic on Walgreens ahead of Fiscal 2Q17 Results
Walgreens Boots Alliance (WBA) is currently trading at $83.56 as of March 27, 2017, which is ~5.3% below its 52-week high.
Rite Aid Shares Could Slide 53% if WBA-RAD Falls Apart
In a recent research note, a Deutsche Bank analyst warned about a sharp plunge in Rite Aid’s share price if its proposed deal with Walgreens Boots Alliance falls apart.
The WBA-RAD Merger and the 43% Fall in Rite Aid Stock
Uncertainty over closing the proposed merger between Walgreens Boots Alliance (WBA) and Rite Aid (RAD) has resulted in a 42.8% fall in RAD stock YTD.
What’s Happened since the Walgreens–Rite Aid October 2015 Deal?
The merger of Walgreens and Rite Aid would join the second- and third-largest drugstore chains and thus significantly reduce competition.
Walgreens–Rite Aid Merger Deal: The Drama and the Wait
According to a recent Bloomberg report, Walgreens is working on preparing a new deal with Rite Aid in order to please regulatory authorities.
Who Loses with the Walgreens–Rite Aid Amended Merger Agreement?
Walgreens Boots Alliance (WBA) and Rite Aid (RAD) have amended their merger agreement. WBA will now pay less for each RAD share, depending on the number of locations it must divest.
Rite Aid Stock Tanks as Walgreens Drops Merger Price
Walgreens Boots Alliance (WBA) and Rite Aid (RAD) have amended their merger agreement. Walgreens will now pay $6.50–$7 per share instead of $9.
After Walgreens’s 1Q17 Results, Wall Street Remains Positive
Analysts have a positive to neutral view on Walgreens and has rated its stock a “2” on a scale of “1-strong buy” to “5-sell.”
Strong Performance for Walgreens’s Retail Pharmacy USA Division
In fiscal 1Q17, sales for WBA’s Retail Pharmacy USA division rose 1.4%. It was the only segment that reported sales growth.
Walgreens’s Currency Headwinds for Its International Businesses
In the last couple of quarters, Walgreens Boots Alliance’s (WBA) fiscal 1Q17 top line was negatively affected by currency headwinds, falling 1.8% YoY.
Walgreens Reported Top-Line Fall for First Time in 4 Years
In fiscal 1Q17, WBA reported a top-line fall for the first time in the last 16 quarters. But the fall in revenues was primarily due to currency headwinds.
GNC Holdings Announces the Implementation of New Plans
GNC Holdings reported 3Q16 revenues of $628.0 million, a fall of 8.1% compared to revenues of $683.4 million in 3Q15.
Walgreens Boots Alliance’s SWOT Analysis ahead of 1Q17 Results
Let’s wrap up this series on Walgreens (WBA) with a brief SWOT (strengths, weaknesses, opportunities, and threats) to gauge the company’s standing.
Walgreens Stock Has a Potential Upside of 8.0% over the Next Year
Walgreens Boots Alliance (WBA) is currently trading at $86.08 as of December 19, 2016, which is ~2.2% below its 52-week high. The stock has risen 1.0% YTD.
A Look at Walgreens Boots Alliance’s Initiatives and Partnerships
During fiscal 2016, Walgreens entered into various strategic partnerships to advance its retail and pharmacy operations.
A Sneak Peek at Walgreens’ Fiscal 2016 Top-Line Performance
Walgreens Boots Alliance (WBA) posted strong results in fiscal 2016. Revenues rose 13.4% YoY, and EPS rose 18.3% over the previous year.
Will the WBA-RAD Deal Clear FTC Hurdles?
Walgreens Boots Alliance (WBA) is looking to divest 650 stores in order to win the Federal Trade Commission’s (FTC) approval for its pending Rite Aid (RAD) acquisition.
Where Does Walgreens’s Deal with Rite Aid Stand a Year Later?
Walgreens’s deal with Rite Aid is currently awaiting the Federal Trade Commission’s (or FTC) approval. The FTC has asked Walgreens to close or sell ~650 stores.
How Does GNC Holdings Compare to Its Peers?
GNC’s peers have outperformed GNC Holdings based on PE and PBV ratios. But GNC has mostly outperformed its peers based on PS ratios.
GNC Holdings’ 3Q16 Revenue Fell 8.1%: What Does It Mean?
GNC Holdings (GNC) reported 3Q16 revenue of $628.0 million, a fall of 8.1%. Its gross profit margin and operating margin fell 240 bps and 170 bps, respectively.
Is CVS a Better Buy than WBA? Here’s Wall Street’s View
Walgreens Boots Alliance and CVS Health are both covered by 26 Wall Street analysts each.
Walgreens’s Deal with Rite Aid Still on, but Delayed
In October 2015, Walgreens Boots Alliance (WBA) announced its intention to acquire Rite Aid (RAD) for a total enterprise value of $17.2 billion.
In Walgreens-Rite Aid Deal, $1 Billion in Synergies on the Table
WBA is still awaiting approval from the FTC, which has asked WBA to shut or sell around 650 of its stores, or ~5% of the WBA-RAD combined store count.
Analyzing GNC Holdings’ Performance in 2Q16
GNC Holdings has a market cap of $1.5 billion. It fell by 25.5% and closed at $20.28 per share on July 28, 2016. It reported 2Q16 revenue of $673.2 million.
How Was Walgreens’s Retail Pharmacy Business Performance in the US?
Walgreens (WBA) operates close to 8,200 pharmacies in the US. It is closely followed by CVS Health (CVS), which operates slightly fewer than 8,000 pharmacies.
Walgreens Boots Alliance Issued the Most High-Grade Bonds
Walgreens Boots Alliance (WBA) issued Baa2/BBB rated high-grade bonds worth $6.0 billion through five parts on May 26.
Why Target Is Focusing on Its Signature Categories to Drive Sales
Target has identified four signature categories it’s concentrating on to provide higher store and web traffic and sales: Baby, Style, Wellness, and Kids.
What Were the Key Revenue Drivers for WBA in 1Q16?
Walgreens Boots Alliance’s (WBA) sales rose 48.5% YoY (year-over-year) to $29 billion in 1Q16. The increase was largely driven by the consolidation of Alliance Boots’ operations.
How Does WBA’s Stock Market Performance Compare to Peers?
After delivering a decent performance in the stock market in 2015 with returns of 12%, Walgreens Boots Alliance (WBA) had a rought start in 2016.
Who Were the Outliers in the Consumer Space?
The S&P 500 slightly outperformed the S&P Consumer Staples and the S&P Consumer Discretionary last week.