Rite Aid Corporation (NYSE: RAD) tanked nearly 30% on Thursday after the drugstore chain reported bigger than expected loss for its fiscal second quarter and lowered guidance for the full year.
Rite Aid Q2 earnings snapshot
Lost $331.3 million versus the year-ago figure of $100.3 millionPer-share loss climbed significantly from $1.86 to $6.07Adjusted loss printed at 63 cents a share, as per the press releaseRevenue slid 3.5% on a year-over-year basis to $5.901 billionConsensus was 50 cents of per-share loss on $5.773 billion revenue
Rite Aid blamed store closures, higher facility exit, and goodwill impairment charges related to its Pharmacy Services. In the earnings press release, CEO Heyward Donigan said:
We’ve made good progress on key initiatives during the quarter; driving prescription growth and market share, improving operating margins at Elixir and achieving reductions in SG&A expenses across our business.
Following the stock market news, the Rite Aid stock is trading just above its year-to-date low.
Rite Aid stock down on lowered future guidance
For the year, Rite Aid continues to see $23.6 billion to $24.0 billion in revenue. It, however, forecasts a bigger $520.3 million to $477.3 million in loss now. The chief executive added:
In H2, we expect continued pressure on consumer spending and supply chain challenges. At the same time, we’re ready to meet a high demand for immunisations, while driving continued strong performance at Elixir and further SG&A expense reductions.
Wall Street currently has a consensus “sell” rating on the Rite Aid stock.
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