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Stock Market & Financial Investment News

News Breaks
June 19, 2014
12:20 EDTMCK, CVS, RAD, WAGRite Aid slides after posting a steeper decline in profit vs. last year
Shares of retail drugstore chain Rite Aid (RAD) are falling after the company reported that its first quarter profit was down significantly from the year-ago period. WHAT'S NEW: Rite Aid reported Q1 earnings per share of 4c, matching analyst's expectations, but below the 9c it reported last year. Revenue for the quarter was $6.47B, slightly higher than expectations of $6.43B ad $6.3B in the prior year quarter. Rite Aid's Q1 same-store sales were up 3.1% over the prior year period. The retailer reported net income of $41.4M, well below the company's net income at this time last year of $89.7M. A decrease in adjusted EBITDA and higher income tax expense contributed to this result and these factors were partially offset by lower interest expense and a lower LIFO charge. Rite Aid confirmed that it sees fiscal year 2015 EPS in the range of 30c-40c, while analysts estimate that EPS will be 35c. The company still sees FY15 revenue to be between $26B-$26.5B, which is in line with analyst's consensus of $26.19B. The retailer confirmed that it sees FY15 SSS of up to 2.5%-4.5% vs. fiscal year 2014. WHAT'S NOTABLE: During the company's Q1 earnings conference call, Rite Aid said that as it more aggressively pursues opportunities for growth, it is prepared to increase allocation for prescription file buys if additional opportunities arise throughout the fiscal year. The retailer expects the current competitive environment to remain promotional and is also considering plan wages and benefit increases. Rite Aid said that it increased its expected working capital benefit to $250M from $150M as a result of the McKesson (MCK) agreement and says the working capital benefit will not be fully realized until the fourth quarter. As the company mentioned on its FY14 earnings call in April, it expected the second half of FY15 to be stronger than the first two quarters due in part to the strength of FY14's first half as well as the introduction of new generics in 2H15. Rite Aid anticipates closing a total of 40 stores of which the guidance includes a store lease closing provision for FY15 to balance closing upon lease expiration. ANALYST REACTION: UBS analyst Scott Arwin said that generic drug MAC-ing by pharmacy benefit managers was a component in Rite Aid's Q1 earnings falling below predictions. He said that the retailer's management suggested that historically, they would usually have some ability to go back to generic manufacturers to offset some of the MAC reimbursement cuts. In this situation, however, Arwin said the company is currently hindered temporarily on their ability to do this during the transition of its generic procurement over to McKesson. Ride Aid suggested that this will also impact second quarter results as well, Arwin said. UBS maintains its Neutral rating on the drugstore franchise and raised its price target to $7.50 from $7.00. PRICE ACTION: During afternoon trading, Rite Aid was down 24c or 3.23%, to $7.20. OTHERS TO WATCH: Rite Aid peer Walgreen Company (WAG) was down around 0.8% to $75.45, while CVS Caremark (CVS) was up moderately to $77.46.
News For RAD;MCK;WAG;CVS From The Last 14 Days
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June 23, 2015
10:40 EDTCVSCVS Health sees Omnicare transaction closing by end of year
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10:31 EDTCVSCVS Health names Norman de Greve as Chief Marketing Officer, effective July 15
CVS Health announced that Norman de Greve will join CVS Health as Chief Marketing Officer, effective July 15. In this role, de Greve will be accountable for marketing strategy across the enterprise. He is currently the President of the Boston and Detroit offices of DigitasLBi.
10:30 EDTRADOptions with decreasing implied volatility
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June 22, 2015
10:21 EDTRADOptions with decreasing implied volatility
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08:17 EDTMCKMcKesson appoints Kathy McElliogott as EVP, CIO, CTO
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June 19, 2015
16:24 EDTCVSStocks end week higher after Fed reassures on gradual pace of rate increases
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15:49 EDTMCKMcKesson to host investor day
Investor meeting to be held on June 24 at 9 am. Webcast Link
13:38 EDTRADOptions with decreasing implied volatility
Options with decreasing implied volatility: QIHU PIR RHT BLUE KMX RAD KBH ADBE ACM KR
10:48 EDTRADStocks with call strike movement; RIG RAD
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June 18, 2015
12:04 EDTRADActive options: AAPL ORCL FB RAD BAC HTZ MU GE TSLA AMZN BABA KO
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10:01 EDTCVSOn The Fly: Analyst Initiation Summary
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09:44 EDTRADRite Aid falls, levels to watch
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09:35 EDTRADActive equity options trading on open
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09:04 EDTRADOn The Fly: Pre-market Movers
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07:38 EDTCVSLeerink to hold a roundtable
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07:04 EDTRADRite Aid cuts FY16 EPS view to 14c-22c from 19c-27c
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07:01 EDTRADRite Aid reports Q1 EPS 2c including items, consensus 3c
EPS includes 2c on an after-tax basis, incurred in connection with the company’s pending acquisition of EnvisionRx. These incremental costs were partially offset by an increase in Adjusted EBITDA. Reports Q1 revenue $6.6B, consensus $6.65B. Reports Q1 SSS up 2.9%, consisting of a 0.6% increase in front-end sales and a 3.9% increase in pharmacy sales.
June 17, 2015
16:22 EDTCVSCVS Health initiated with an Outperform at Oppenheimer
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15:16 EDTRADNotable companies reporting before tomorrow's open
Notable companies reporting before tomorrow's open, with earnings consensus, include Rite Aid (RAD), consensus 3c... Kroger (KR), consensus $1.22.
June 16, 2015
08:41 EDTCVSCVS Health deal 'extremely attractive,' says SunTrust
After CVS Health (CVS) agreed to buy Target's (TGT) pharmacies/clinics, SunTrust says that CVS.will benefit strategically and financially from the deal. The firm believes that the deal is capital efficient, provides CVS with an immediate and noticeable presence in several key markets and further rounds out CVS' presence in other geographies. It keeps a Buy rating on the stock.
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