Rite Aid reported a widened second-quarter loss this morning, as expenses related to its acquisition of Brooks Eckerd hurt the drugstore chain's bottom line. The net loss amounted to $69.6 million, or 10 cents per share. In the year-ago quarter, RAD lost $330,000, or 2 cents per share. Revenue for the period climbed to $6.6 billion from $4.29 billion. Same-store sales for the quarter rose 1.1%. The average analyst estimate called for RAD to lose 6 cents per share on $6.76 billion in revenue.
Rite Aid also stated that cost savings related to the acquisition will be about $200 million, up from previous estimates of $155 million. The chain tightened also tightened up its guidance for sales, trimming its total sales forecast for the year to a range between $24.5 million to $25.1 billion, compared to previous estimates of $25.3 billion to $26.0 billion. Same-store sales are now expected to grow 1.3% to 3.3%, instead of the previously predicted growth of 3.8% to 5.8%. RAD now expects a fiscal net loss between 15 and 27 cents per share, increased from its prior forecast for a per-share net loss of 11 to 23 cents.
This morning, the shares are down nearly 6% as a result. Resistance from RAD's steeply declining 10-week moving average is holding steady, as it has since mid-July. The struggling stock recently broke through resistance from its 20-day moving average, but has now slipped back below this level. However, the stock's decline seems to be approaching a bottom, as most of its movement of late has been in a sideways direction. RAD also enjoys a wealth of pessimism from the Street, indicating a lot of negativity may have already been priced in: Analysts have not awarded the equity a single buy rating, and bears have sold short 6.5% of the stock's available float.