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

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Shares of Rite Aid Corp.
RAD,
+2.61%
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
SPX,
-0.11%
has gained 9.1%.

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Julia has handled various businesses throughout her career and has a deep domain knowledge. She founded Stock Market Pioneer in an attempt to bring the latest news to its readers. She is glued to the stock market most of the times and just loves being in touch with the developments in the business world.

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