What Caught Our Attention in the Investment World? – Week of December 16-20, 2019

By Kuldip K. Ambastha and Anil K. Ambastha

On Thursday, December 19, 2019, Rite Aid Corporation (RAD) delivered a strong 42.3% return for the day. On that day, the company announced a quarterly earnings figure of $0.54 per share, for the quarter ending November 2019. This figure beat various consensus estimates quite significantly and thus qualifies as an earnings surprise. One year ago, the company had a quarterly earnings figure of $0.20 per share. In three of the past four quarters, the company has exceeded its earnings per share consensus estimate. For the most recent quarter, revenues of $5.46 billion were seen, and this figure is slightly higher than the $5.45 billion seen in the last quarter. Tight expense control and strong prescription count growth were helpful during the quarter. On Friday, December 20, 2019, Rite Aid stock went up by another 18.5%.

Keywords – Rite Aid Corporation, Rite Aid, RAD, pharmacy, retailer, earnings per share, earnings, EPS, earnings surprise, revenues, expenses, growth.

Disclosure – The principals and clients of Ambastha Financial LLC do not have any positions in RAD.

Disclaimer – No recommendations are being made via this post. Past performance is not an indicator of future performance. As an investor, you should do your own research and seek professional advice from a Registered Investment Adviser (RIA). You can lose money by investing in stocks and other instruments. Ambastha Financial LLC does not assume any responsibility (legal or otherwise) for any losses that may occur as a result of actions taken based on this post. All content copyrighted © 2019 – Ambastha Financial LLC.

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