Rite Aid Corp Down 27.93% To $5.07 After Earnings Miss

Thursday, September 29, 2022 - Rite Aid Corp (RAD) reported downside earnings and upside revenues.

Rite Aid Corp's earnings came in at an EPS loss of $0.63 per share, 15% lower than estimates for an EPS loss of $0.55 per share. The firm's loss per share expanded by 54% since reporting a loss of $0.41 per share a year ago. Remember, earnings reported were on an adjusted basis, so they may not be comparable to prior reports and/or analyst estimates.

Analyst projections for Rite Aid Corp revenue came in at a consensus of $5.8 billion. Second-Quarter revenues surpassed estimates for $5.9 billion by $131 million (2%). The company achieved negative 3% growth year-over-year compared to the firm's revenue of $6.1 billion from the year-ago quarter. The lower earnings growth relative to revenue signals Rite Aid Corp has not been able to improve its profit margin.

The stock is down 27.93% to $5.07 after the report.

Despite Rite Aid Corp reporting a decline in revenues, earnings increased signaling a rise in profit margins.

The average recommendation from Wall Street analysts was a Strong Sell which may get revised based on this new data.

InvestorsObserver gives the stock a Bearish Sentiment score at the moment based on recent trading.

Prior to the report, InvestorsObserver gave the stock an overall score of 52. Meanwhile, the average Wall Street analyst rated the stock a Strong Sell.

Rite Aid Corp is a large retail drugstore chain in the United States. The company reports via two segments: retail pharmacy and pharmacy services. The retail pharmacy segment generates revenue primarily through the sale of prescription drugs, along with an assortment of merchandise that includes over-the-counter medications, health and beauty aids, personal care items, cosmetics, household items, food and beverages, greeting cards, seasonal merchandise, and numerous other everyday consumables. The pharmacy-services segment relates to EnvisionRx, a fully owned subsidiary that operates as a pharmacy benefit management provider offering a broad range of pharmaceutical services.