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Stock Market & Financial Investment News

News Breaks
June 19, 2014
12:20 EDTRAD, MCK, WAG, CVSRite 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
Check below for free stories on RAD;MCK;WAG;CVS the last two weeks.
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July 24, 2014
16:09 EDTRADRite Aid names Darren Karst as executive VP, CFO
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16:05 EDTRADRoundy's CFO Karst leaves for Rite-Aid, names Michael Turzenski as CFO
Roundy’s (RNDY) announced that Darren Karst, Roundy’s executive VP and CFO will be leaving the company to join Rite Aid (RAD) as its executive VP and CFO. Karst will remain with Roundy’s through August 9. Michael Turzenski, currently Roundy’s group VP and Chief Accounting Officer, has been appointed group VP, CFO by Roundy’s board. Turzenski has served as group VP, Chief Accounting Officer since February 2012. Turzenski joined Roundy’s in 2007 as VP, controller.
09:17 EDTWAGWalgreen's president of pharmacy, health and wellness announces retirement
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July 23, 2014
06:02 EDTWAGWalgreen implied volatility of 37 at upper end of index mean range
July 22, 2014
10:07 EDTWAGWalgreen new corporate structure could add $10-$12 upside, says Deutsche Bank
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09:51 EDTWAGWalgreen added to short-term buy list at Deutsche Bank
July 18, 2014
06:21 EDTWAGCTW Investment asks SEC to probe Walgreen's meetings, NY Post says
CTW Investment Group has asked the SEC to investigate private meetings that top Walgreen (WAG) executives held with investors to reincorporate overseas for tax reasons, reports the New york Post. The pension advisor is raising questions about whether Walgreen's meetings with Goldman Sachs (GS), Jana Partners, Och-Ziff and Corvex broke fair disclosure rules. Reference Link
July 16, 2014
08:39 EDTCVSCVS Caremark signs new affiliations with four major health care providers
CVS Caremark has entered into new clinical affiliations with four major health care providers in Connecticut, Texas, South Carolina and Louisiana. Through these clinical affiliations the patients of these health care providers will receive access to clinical support, medication counseling, chronic disease monitoring and wellness programs at CVS/pharmacy stores and MinuteClinic, the retail health care division of CVS Caremark.
07:42 EDTCVSCVS Caremark earnings could beat expectations, says Wells Fargo
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06:27 EDTWAGWalgreen could relocate to Switzerland if it buys out Alliance Boots, WSJ says
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July 14, 2014
16:23 EDTCVSCVS Caremark acquires Miami-based Navarro Discount Pharmacy
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06:06 EDTWAGWalgreen implied volatility of 35 at upper end of index mean range
July 11, 2014
06:03 EDTWAGWalgreen implied volatility of 34 at upper end of index mean range
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06:00 EDTRADStocks with implied volatility below IV index mean; RAD BBBY
Stocks with implied volatility below IV index mean; Rite Aid (RAD) 36, Bed Bath & Beyond (BBBY) 18 according to iVolatility.
July 10, 2014
08:03 EDTMCKAccretive Health names Emad Rizk as CEO and president
Accretive Health (ACHI) announced that its Board of Directors has appointed Emad Rizk, M.D., president of McKesson Health Solutions (MCK), as CEO, President, and a member of the Board of Directors, effective July 21.

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