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UPDATE: Rite Aid Posts Upbeat Q3 Results, Lifts Forecast

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Shares of Rite Aid Corporation (NYSE: RAD) gained more than 11% in pre-market trading after the company reported better-than-expected third-quarter results and raised its forecast for the year.

For fiscal 2015, Rite Aid now projects earnings of $0.31 to $0.37 per share, versus its earlier forecast of $0.22 to $0.33 per share. It now projects sales of $26.25 billion to $26.4 billion, versus its prior outlook of $26 billion to $26.3 billion.

The Camp Hill, Pennsylvania-based company posted quarterly earnings of $104.8 million, or $0.10 per share, compared to $71.5 million, or $0.04 per share, in the year-ago period.

Its revenue climbed 5.3% to $6.69 billion. However, analysts were expecting earnings of $0.05 per share on revenue of $6.61 billion.

Same store sales gained 5.4% for the quarter. Rite Aid's front-end same-store sales increased 1.6% in the quarter, while pharmacy same-store sales gained 7.2%.

Adjusted EBITDA jumped to $332.8 million from $282.3 million.

In the quarter, Rite Aid relocated 3 stores, remodeled 103 stores and expanded 1 store.

"We are pleased with our results for the third quarter, said Rite Aid Chairman and CEO John Standley.” Our focus on expanding our health and wellness offering and delivering a higher level of care to the communities we serve drove our strong same-store sales, prescription count and gross profit.”

Rite Aid shares climbed 11.22% to $6.74 in pre-market trading.

 

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