Why Rite-Aid Stock Fell 28% on Thursday
Drug store company Rite-Aid (NYSE: RAD) saw its shares drop 28% on Thursday. The stock closed on Wednesday at $7.03, then opened markedly lower at $5.75 on Thursday, falling to as low as $4.86 before closing at $5.06. The stock was close to its 52-week low of $4.68 and well off its 52-week high of $15.65.
Rite-Aid released its fiscal 2023 second-quarter earnings before the market opened on Thursday, and the news was overwhelmingly negative. Revenue was a reported $5.9 billion, down 3% year over year, while the company said it had a net loss of $6.07 in earnings per share (EPS) compared to an EPS loss of $1.86 in the same period a year ago. While a noncash goodwill impairment charge made that loss more than normal, the company's adjusted EPS loss was $0.63 compared to $0.41 in the second quarter of 2021.
If this were a one-time thing, that would be concerning, but what sent investors selling was that it was the company's third consecutive quarter with declining revenue.
Source Fool.com
