Rite Aid Corp. (RAD) posted a quarterly loss of $0.09 a share for the third quarter of fiscal 2011, which was an improvement over Zacks Consensus Estimate of a loss of $0.13.
Wal-Mart’s foray into the retail generic drug market is putting pressure on Rite Aid’s pharmacy margin. Moreover, an increased debt burden and interest expenses due to the acquisition of Brooks Eckerd has limited the scope of additional finance.
The company has lowered its sales guidance for fiscal 2011 in the range of $25.0 billion to $25.2 billion. Thus, we maintain our Underperform recommendation over the stock.
RITE AID CORP (RAD): Free Stock Analysis Report
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