Rite Aid Corp.
shares rose 7.7% in premarket trades after the pharmacy chain posted a narrower-than-expected loss and beat its revenue target. Rite Aid said its third-quarter loss widened to $67.14 million, or $1.23 a share, from a loss of $36.06 million, or 67 cents a share, in the year-ago quarter. The company’s adjusted loss was 14 cents a share, while in the year-ago quarter the company reported adjusted net income of 15 cents a share. Wall Street analysts expected Rite Aid to lose 15 cents a share, according to estimates compiled by FactSet. Rite Aid’s third-quarter revenue dropped to $6.08 billion from $6.23 billion, but beat the analyst estimate of $5.94 billion. Looking ahead, Rite Aid expects a 2023 adjusted loss of $2.18 to $1.78 a share and revenue of $23.7 billion to $24 billion. Analysts expect the company to lose $1.78 a share on revenue of $23.73 billion. CEO Heyward Donigan said the company lowered its guidance “due to headwinds including pharmacy margin, seasonal markdowns and higher shrink” but said the company is starting a performance acceleration program to fast-track initiatives that will improve sales, script volume and operating margins, and free up cash.
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