Why Rite Aid's Shares Dropped 17.3% on Wednesday
Shares of pharmacy stock Rite Aid (NYSE: RAD) fell as much as 17.3% in morning trading on Wednesday after reporting fiscal third-quarter 2023 financial results. The stock didn't recover much by noon ET, when it was down 14.1%.
Quarterly revenue fell 2.3% to $6.08 billion, and net loss nearly doubled to $67.1 million, or $1.23 per share. Retail results were about flat from a year ago, but margins were down, while pharmacy services revenue fell 7.1% to $1.73 billion.
It was guidance that really concerned investors. Management now expects full fiscal-year 2023 revenue to be between $23.7 billion and $24 billion, with a net loss of $584 million to $551 million. Only three months ago, they expected $23.6 billion to $24 billion in revenue and a net loss of $520.3 million to $477.3 million, so clearly margins and costs are deteriorating quickly.
Source Fool.com
