Today's Research Reports on Stocks to Watch: Walgreens Boots Alliance and Rite Aid Corporation
NEW YORK, NY / ACCESSWIRE / June 30, 2017 / Shares of Rite Aid took a mean fall yesterday and even hit a new 52-week low after Walgreens scrapped its old acquisition deal with the drugstore chain and came up with a new one. It also didn't help much that the company reported first quarter results and reported a loss. Walgreens on the other hand saw gains after reporting third quarter results that beat the Street.
RDI Initiates Coverage on:
Walgreens Boots Alliance, Inc.
https://ub.rdinvesting.com/news/?ticker=WBA
Rite Aid Corporation
https://ub.rdinvesting.com/news/?ticker=RAD
Walgreens Boots Alliance, Inc.'s shares closed up 1.66% on Thursday on nearly 15 million shares traded. The company has ended its $9.4 billion merger agreement with Rite Aid as getting approval from the FTC wasn't looking like a reality. Instead Walgreens announced that it was seeking to buy just half of Rite Aid's stores instead for $5.18 billion in an all cash transaction. This deal would most likely avoid FTC scrutiny. Walgreens also reported its third quarter results yesterday that beat expectations. The company reported a profit of 1.07 per share. Earnings came in at $1.33 per share after being adjusted for one-time gains and costs. This was two cents ahead of what analysts surveyed by Zacks Investment Research had been looking for. Revenue at $30.12 billion was also ahead of the $29.68 billion that analysts surveyed by Zacks had expected. Looking ahead the company has forecast full year earnings of $4.98 to $5.08 per share.
Access RDI's Walgreens Boots Alliance Research Report at:
https://ub.rdinvesting.com/news/?ticker=WBA
Rite Aid Corporation's shares crumbled and hit a new low of $2.75 on Thursday. Shares a year ago were trading at $7.31. Traders weren't too kind to the stock after they found out that Walgreens had ended its deal to buy the company after not being able to gain antitrust approval. Instead Walgreens revealed a new plan to buy 2,186 stores, three distribution centers and related inventory of Rite Aid for $5.18 billion. The drug-store chain also reported its fiscal first quarter results and reported a loss of $75.3 million. For the period it saw a per share basis loss of 7 cents and adjusted for one-time gains and costs, losses were 5 cents per share. Revenue for the third quarter was $7.78 billion.
Access RDI's Rite Aid Research Report at:
https://ub.rdinvesting.com/news/?ticker=RAD
Our Actionable Research on Walgreens Boots Alliance, Inc. (NASDAQ: WBA) Rite Aid Corporation (NYSE: RAD) and downloaded free of charge at Research Driven Investing.
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