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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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September 18, 2014
10:27 EDTRADOptions with decreasing implied volatility
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09:36 EDTRADActive equity options trading on open
Active equity options trading on open according to Track Data: AAPL YHOO TWTR VVUS RAD PWE WFM TSLA PIR SHLD
09:15 EDTRADRite Aid remains 'optimistic' about FY16
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09:02 EDTRAD, MCKRite Aid sees current competitive enviornment to remain promotional in FY15
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08:59 EDTRADOn The Fly: Pre-market Movers
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07:04 EDTRADRite Aid cuts FY15 EPS view to 22c-33c, consensus 34c
Based upon current estimates for reimbursement rates and anticipated lower profitability from new generics and generic drugs that recently lost exclusivity, the company is expecting decreases in pharmacy margin in the second half of Fiscal 2015 as compared to its prior estimates and therefore is lowering its guidance for Adjusted EBITDA, net income and net income per diluted share. Previous EPS view was 30c-40c. Cuts FY15 high end of revenue view to $26B-$26.3B from $26B-$26.5B, consensus $26.29B. Now sees FY SSS up 3%-4% over FY14. Sees FY CapEx $525M. Sees adjusted EBITDA $1.2B-$1.275B.
07:02 EDTRADRite Aid reports Q2 EPS 13c, consensus 6c
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September 17, 2014
15:18 EDTRADNotable companies reporting before tomorrow's open
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September 16, 2014
08:12 EDTWAGWalgreen files S-4, prospectus for strategic transaction with Alliance Boots
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September 15, 2014
09:59 EDTCVSOn The Fly: Analyst Upgrade Summary
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07:24 EDTCVSCVS Health upgraded at Cowen
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06:07 EDTCVSCVS Health upgraded to Outperform from Market Perform at Cowen
September 12, 2014
18:43 EDTWAGCtW Investment calls on Walgreen to provide details on earnings, Reuters says
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September 10, 2014
13:35 EDTRADRite Aid September volatility elevated into Q2 and outlook
Rite Aid September call option implied volatility is at 61, October is at 52, January is at 42; compared to its 26-week average of 49 according to Track Data suggesting large near term price movement into the expected release of Q2 results after the close on September 18.
September 9, 2014
08:00 EDTWAGWalgreen price target lowered to $75 from $85 at Leerink
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07:38 EDTWAGWalgreen pushed to boost buyback as Jana secures seats, Bloomberg says
Walgreen will most likely be pushed to increase a to $3B share buyback program that let down investors in August after Jana Partners reached an agreement on three board seats at the company, according to Bloomberg, citing a person familiar with the matter. Reference Link
September 8, 2014
08:01 EDTCVSCVS Health completes purchase of Navarro Discount Pharmacy
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07:26 EDTMCK, CVSMorgan Stanley to hold a conference
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06:54 EDTWAGWalgreen appoints JANA's Barry Rosenstein to board of directors
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05:50 EDTWAGStocks with implied volatility movement; DE WAG
Stocks with implied volatility movement; Deere (DE) 15, Walgreen (WAG) 30 according to iVolatility.
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