Analysts Expect Rite Aid to Post 4Q Loss on Lower Margins From Brooks Eckerd Stores Purchase

NEW YORK (AP) -- Drugstore operator Rite Aid Corp. has already said its fourth-quarter revenue grew about 50 percent from the prior year to $6.81 billion, due to the acquisition of about 1,800 Brooks Eckerd stores in June.

But analysts expect the company to report a loss for the quarter on Thursday, due to lower margins from the acquired stores. Lehman Brothers analyst Meredith Adler rates the stock "Overweight," noting that the acquisition could boost its pricing power. Goldman Sachs analyst John Heinbockel rates it "Neutral," saying CVS Caremark (CVS) looks like the best bet in the industry.