Rite Aid Surges After Sales Forecast Tops EstimatesAnna Edney
Rite Aid Corp. rose to its highest value in a dozen years after the third-largest U.S. drugstore company provided a full-year sales forecast higher than analysts’ estimates.
Rite Aid gained 8.4 percent to $6.94 at 4 p.m. New York time, its highest price since Oct. 3, 2001. The shares of the Camp Hill, Pennsylvania-based company almost quadrupled in the 12 months through today.
Revenue for fiscal 2015 is expected to be $26 billion to $26.5 billion, Rite Aid said in a statement today. That was more than analysts’ average estimate of $25.8 billion. Sales for the fourth quarter ended Feb. 28 were $6.6 billion, also higher than estimates.
Rite Aid is now positioned “to transition our strategy from turnaround to growth as we more aggressively pursue opportunities to become a growing retail health-care company,” Chief Executive Officer John Standley said in the statement.