by Ian Harvey
August 27, 2019
A Rite Aid OCT 18 2019 7.000 CALL, at approximately $0.85, was recommended on Monday September 23, 2019 to Stock Options Made Easy “Earnings Predictions” members; and the price of the options trade has increased 245% since then.
The drugstore chain Rite Aid Corporation (NYSE: RAD) aimed to please members by reporting a great second-quarter earnings of 12 cents per share on Thursday, beating the analyst consensus estimate of 7 cents by 71.43%.
The company reported quarterly sales of $5.366 billion, missing the analyst consensus estimate of $5.41 billion by 0.81%.
This quarterly report represents an earnings surprise of 50%. A quarter ago, it was expected that this drugstore chain would post earnings of $0.02 per share when it actually produced a loss of $0.14, delivering a surprise of -800%.
Also, Rite Aid narrowed is fiscal 2020 EPS guidance from a range of a loss of 14-72 cents to a range of zero to positive 56 cents. The Street is estimating a 2-cent adjusted EPS loss for 2020.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
The stock has a 52-week high of $27.20 and a 52-week low of $5.04.
YOU NEED TO BE IN TO PROFIT!
Newly appointed CEO Heyward Donigan of the Camp Hill, Pennsylvania-based company, attributed the positive quarter to "prescription count growth and strong expense control."
In a statement, Donigan, who has only been CEO since August, expressed her optimism about the company's future as she "believe[s] in the Rite Aid brand and the opportunity [they] have to deliver innovative experiences as a health and wellness destination."
"I'm also encouraged by the market opportunities for EnvisionRxOptions as health plans and employers rethink their pharmacy services partnerships," she added. "In talking with many associates during my first 45 days, we know there is important work in front of us, and we are acting with urgency to finalize a strategic plan that positions our company to meet its full potential."
Join us today and see what we are considering for Rite Aid!
Next Up for Rite Aid.....
Rite Aid updated its fiscal 2020 outlook. Rite Aid currently expects revenue of between $21.5 billion and $21.9 billion in fiscal 2020, with same-store sales expected to range from flat to 1% over fiscal 2019.
It is forecasting a loss of between $235 million and $275 million, adjusted EBITDA of between $510 million and $550 million, and adjusted earnings per share of between zero and 56 cents. Analysts are currently forecasting a 2-cent loss for Rite Aid's fiscal year.
What Can You Do?
Find out what we are recommending “Stock Options Made Easy" members to do.....
What will “Stock Options Made Easy” advise members to do?
More "Earnings Predictions" will be out before trading starts on Monday.
AS ALWAYS THE DECISION IS YOURS!
An Important Note: That any suggestions for options trade considerations require investors/traders to use their own discretion as to when to enter or exit! As well, it is advisable to do further research and due diligence before executing your trade.
It is sometimes best to exit a trade, if there is already sufficient profit accrued, before an earnings report is presented. GREED can be the undoing of a nice profit!