RITE AID SHARES DROP 43%; DECLINE IN EARNINGS DISAPPOINTS ANALYSTS.Byline: Christine Dunn Bloomberg News Shares of Rite Aid Rite Aid (NYSE: RAD) is a United States retailer and pharmacy chain, operating over 5,000 stores in 31 states and the District of Columbia. Rite Aid Corporation is one of the nation's leading drugstore chains. Corp., the No. 3 U.S. drugstore chain, had their biggest drop ever, after the company said costs from expansion will cause fiscal fourth-quarter earnings to miss analysts' estimates. Earnings will be about 30 cents to 32 cents a share for the quarter ended Feb. 27, Rite Aid said. It was expected to earn 52 cents, the average estimate of analysts polled by First Call Corp. A year ago, it earned 44 cents a share. Rite Aid has acquired several smaller chains in recent years to keep pace with the expansion of its bigger rivals, Walgreen Co. and CVS (1) (Concurrent Versions System) A version control system for Unix that was initially developed as a series of shell scripts in the mid-1980s. CVS maintains the changes between one source code version and another and stores all the changes in one file. Corp. But analysts say the company expanded too fast, opening 78 more stores than it had planned, raising advertising and other operating costs operating costs npl → gastos mpl operacionales . ``They overextended overextended, adj 1. the situation occurring when a prosthetic appliance is inadvertently constructed in such a way that part of the oral mucosa is injured by the appliance. adj 2. their boundaries,'' said Scotty George, chief investment strategist strat·e·gist n. One who is skilled in strategy. Noun 1. strategist - an expert in strategy (especially in warfare) strategian market strategist - someone skilled in planning marketing campaigns at Corinthian Partners LP. Shares of Rite Aid fell $14.50 to close at $22.50, a decline of 39 percent. At one point, the stock touched $21, a 43 percent decline. Trading totaled 35.8 million, making Rite Aid the second-most active in U.S. markets. About 7 cents of the fourth-quarter shortfall will come from costs associated with opening and relocating 578 stores, more than the 500-store target set early last year. |
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