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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
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August 29, 2014
06:13 EDTWAGStocks with implied volatility below IV index mean; BKW WAG
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August 28, 2014
06:18 EDTWAGStocks with implied volatility below IV index mean; SNDK WAG
Stocks with implied volatility below IV index mean; SanDisk (SNDK) 22, Walgreen (WAG) 19 according to iVolatility.
August 27, 2014
08:33 EDTCVSCVS Caremark announces new clinical affiliation with MedStar Health
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06:07 EDTWAGStocks with implied volatility below IV index mean; SNDK WAG
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August 26, 2014
06:09 EDTWAGStocks with implied volatility below IV index mean; SNDK WAG
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August 25, 2014
06:15 EDTWAGStocks with implied volatility below IV index mean; SNDK WAG
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August 24, 2014
21:53 EDTRAD, CVS, WAGNational Association of Chain Drug Stores to hold an expo
2014 NACDS Total Store Expo to be held in Boston on August 23-25.
August 22, 2014
13:45 EDTWAGWalgreen pharmacy database fails after system update, DJ reports
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05:44 EDTWAGStocks with implied volatility below IV index mean; SNDK WAG
Stocks with implied volatility below IV index mean; SanDisk (SNDK) 23, Walgreen (WAG) 20 according to iVolatility.
August 21, 2014
11:47 EDTWAGWalgreen upgraded at BofA/Merrill
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11:09 EDTWAGWalgreen upgraded to Neutral from Underperform at BofA/Merrill
06:00 EDTWAGStocks with implied volatility below IV index mean; TWX WAG
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August 20, 2014
08:09 EDTWAGWalgreen pressured CFO, pharmacy chief to leave, WSJ reports
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06:00 EDTWAGStocks with implied volatility below IV index mean; SEAS WAG
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August 19, 2014
06:01 EDTWAGStocks with implied volatility below IV index mean; SEAS WAG
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August 18, 2014
08:31 EDTCVSCVS Caremark's Accordant Health receives NCQA accreditation
CVS Caremark announced that its Accordant Health Services division has received full NCQA Patient and Practitioner Oriented Disease Management accreditation for programs to support: Epilepsy, Rheumatoid Arthritis, Multiple Sclerosis, Crohn's Disease, Ulcerative Colitis, Parkinson's Disease, Systemic Lupus Erythematosus, Myasthenia Gravis, Sickle Cell Disease, Cystic Fibrosis, Hemophilia, Scleroderma, Polymyositis, Chronic Inflammatory Demyelinating Polyradiculoneuropathy, Amyotrophic Lateral Sclerosis, Dermatomyositis, and Gaucher Disease.
06:04 EDTWAGStocks with implied volatility below IV index mean; SEAS WAG
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