Rite Aid’s stock sinks after profit beats, but revenue comes up shy

Shares of Rite Aid Corp.
sank 5.5% in premarket trading Thursday, after the drugstore chain beat fiscal first-quarter profit expectations but came up shy on revenue, amid weakness in the pharmacy services business, while also providing a mixed full-year outlook. The net loss for the quarter to May 29 narrowed to $13.1 million, or 24 cents a share, from $63.5 million, or $1.19 a share, in the year-ago period. Excluding non-recurring items, adjusted earnings per share came to 38 cents, above the FactSet consensus of 28 cents. Revenue grew 2.2% to $6.16 billion, below the FactSet consensus of $6.20 billion, as retail pharmacy revenue rose 5.5% to $4.35 billion while pharmacy services revenue declined 5.3% to $1.87 billion. For fiscal 2022, the company expects an adjusted per-share loss of 79 cents to 24 cents and revenue of $25.1 billion to $25.5 billion, compared with the FactSet consensus for a per-share profit of 64 cents and revenue of $24.66 billion. The stock has dropped 12.5% over the past three months through Wednesday, while the S&P 500
has gained 9.1%.

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