Though a market entrant like Amazon is a reason for concern, there are other reasons why Rite Aid's stock price is plunging. The stock price declined sharply in June when its probable merger with Walgreens got canceled due to the lack of approval from the Federal Trade Commission.
Why did Rite Aid stock plummet to a new street low?
Rite Aid stock was plummeting on Thursday after Deutsche Bank cut its price target for the stock to a new Street low ahead of the pharmacy retailer’s earnings report next week.
How bad is Rite Aid's net loss from continuing operations?
The company announced an adjusted net loss from continuing operations in the second quarter of $22 million, or $0.41 per share. This reflected significant deterioration from Rite Aid's adjusted net income of $13.5 million, or $0.25 per share, in the prior-year period.
How did Rite Aid's earnings beat analysts'estimates?
However, Rite Aid's adjusted earnings of $0.38 per share easily beat the average analysts' estimate of $0.22 per share. Image source: Getty Images.
Why did Heyward Donigan Buy Rite Aid shares?
Rite Aid CEO Heyward Donigan bought shares of the drugstore chain the day after it reported a better-than-expected quarter. President and CEO of Rite Aid Corp (30-Year Financial, Insider Trades) Heyward R Donigan (insider trades) bought 14,350 shares of RAD on 12/22/2021 at an average price of $13.93 a share.
Is Rite Aid Struggling?
The retailer lacks the scale and deep national footprints of those chains. As of late November, the company had nearly $3.2 billion in long-term debt on its books. Its net loss for the first nine months of its fiscal year more than doubled from a year ago, to $149.4 million.
Will Rite Aid stock go up?
quote is equal to 6.200 USD at 2022-06-17. Based on our forecasts, a long-term increase is expected, the "RAD" stock price prognosis for 2027-06-11 is 22.100 USD. With a 5-year investment, the revenue is expected to be around +256.45%. Your current $100 investment may be up to $356.45 in 2027.
Is Rite Aid losing money?
Rite Aid has been reporting mounting losses and Thursday was no different, disclosing a net loss from continuing operations of $389.1 million, or $7.18 loss per share for the period ending Feb. 26, 2022.
Should you buy Rite Aid stock?
Rite Aid Corporation - Hold Its Value Score of A indicates it would be a good pick for value investors. The financial health and growth prospects of RAD, demonstrate its potential to outperform the market. It currently has a Growth Score of A.
What is the future of Rite Aid?
The retailer is coming off a modestly successful Q3 2022, with retail pharmacy segment revenues up 7.9% and same-store sales up 4.4% in in Q3 2021, but the company experienced an overall net loss of $36 million during the quarter. Rite Aid expects its store closures to have positive results in the long run.
Will Rite Aid be bought out?
Attempted acquisition by Albertsons On February 20, 2018, Albertsons announced plans to acquire the remainder of Rite Aid, including the 2,600 stores not acquired by Walgreens, in a merger of equals, subject to shareholder and regulatory approval.
Why are so many Rite Aid's closing?
The store closings come in response to significant challenges the company faced due to the pandemic, including supply chain pressures that influenced inventory and sales, shifting store traffic due to increased work-from-home trends, and a tightening labor market.
Did Walgreens buy Rite Aid?
Walgreens Boots Alliance completed its $4.4 billion acquisition of 1,932 Rite Aid stores and three distribution centers in March after a failed 2015 bid to buy the chain outright. Walgreens acquired many of the locations across the Northeast and the South.
Is Rite Aid closing in California?
Two area Rite Aid locations are shuttering this week, marking the fifth and sixth to close their doors in the greater Sacramento area so far in 2022. Two area Rite Aid locations are shuttering this week, marking the fifth and sixth to close their doors in the greater Sacramento area so far in 2022.
Is Rite Aid undervalued?
Rite Aid Corp holds a recent Real Value of $7.66 per share. The prevailing price of the company is $5.75. At this time, the company appears to be undervalued....USD 5.75 0.31 5.70%LowTarget PriceHigh14.0015.0016.00
Is RAD a buy or sell?
Rite Aid has received a consensus rating of Sell. The company's average rating score is 1.00, and is based on no buy ratings, no hold ratings, and 3 sell ratings.
Why is RAD stock up?
Rite Aid (NYSE:RAD) stock is rising higher on Thursday thanks to the company's results from its earnings report for the fourth quarter of fiscal 2022. The good news for RAD stock starts with its revenue of $6.07 billion for Q4 fiscal 2022.
Investors don't like the company's first-quarter update
Keith began writing for the Fool in 2012 and focuses primarily on healthcare investing topics. His background includes serving in management and consulting for the healthcare technology, health insurance, medical device, and pharmacy benefits management industries. Follow @keithspeights
What happened
Shares of Rite Aid ( NYSE:RAD) were plunging 14.3% lower as of 11:22 a.m. EDT on Thursday. The steep decline came after the pharmacy retailer reported its fiscal 2022 first-quarter results before the market opened.
So what
As you might expect after today's sell-off of the healthcare stock, investors weren't happy with Rite Aid's first-quarter results. The company reported revenue of $6.16 billion, below the consensus estimate of $6.21 billion. However, Rite Aid's adjusted earnings of $0.38 per share easily beat the average analysts' estimate of $0.22 per share.
Now what
It's more important to focus on a company's long-term prospects than how it performs in a single quarter. Rite Aid CEO Heyward Donigan said she thinks the pharmacy retailer is on the right track going forward, saying, Rite Aid is in a position to benefit from "a healthier economy and the reopening of the communities we serve."
NYSE: RAD
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What happened
Shares of Rite Aid ( RAD 2.31% ) were sinking 8% as of 11:06 a.m. EDT on Thursday. The decline came after the pharmacy chain announced its second-quarter earnings results before the market opened.
So what
Revenue from continuing operations in the second quarter was $6.11 billion, up 2.2% year over year. This fell short of the Wall Street consensus estimate of $6.21 billion.
Now what
Rite Aid thinks that it could receive a boost from increased demand for COVID vaccines and testing through the end of the year. The company increased its full-year guidance for adjusted earnings before interest, taxes, depreciation, and amortization ( EBITDA) to a range of $460 million to $500 million.
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Rite Aid to shutter two Sacramento locations as part of corporate closure plan
Two Sacramento Rite Aid locations are expected to close over the next few weeks, a company representative confirmed to the Business Journal.
Rite Aid Corporation -- Moody's announces completion of a periodic review of ratings of Rite Aid Corporation
Announcement of Periodic Review: Moody's announces completion of a periodic review of ratings of Rite Aid CorporationGlobal Credit Research - 04 Feb 2022New York, February 04, 2022 -- Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Rite Aid Corporation and other ratings that are associated with the same analytical unit.
Who is the CEO of Rite Aid?
Rite Aid CEO, Heyward Donigan, set the tone, “Elevating our digital experience continues to be a top priority for us. We enhanced our unified commerce experience with the gain-wide launch of our partnership with DoorDash, which is off to a fast start, and is already outperforming our initial expectations.” The Company has provided over 6 million COVID-19 vaccinations and nearly 2.7 million COVID-19 tests so far and is now vaccinating the 12 and over population. The Company has remodeled 70% of its stores or 1,700 stores and opened 7 new flagship stores with a total of 10 flagship stores be opened this year. He continued, “We know our target customer values product attributes like green, organic and better-for-you, and we’re working hard to stock our shelves in the products aligned to our whole health focus. In addition, our pharmacists are continuing to provide whole health support to our communities. Some examples include tip sheets and consultations on traditional and alternative remedies.” He concluded, “In terms of the current selling season, it’s presenting more opportunities than last year, but it’s still not as robust as pre-COVID 2018 and 2019. We anticipated an additional increase in opportunities in the next year’s selling season and the investments we’re making now and our focus on enhancing our product offerings will enable us to win our fair shares.”
When will Rite Aid release its results for 2021?
On June 24, 2021, Rite Aid released its fiscal first-quarter 2021 results for the quarter ending May 2021. The Company reported an earnings-per-share (EPS) profit of $0.38 excluding non-recurring items versus consensus analyst estimates for a profit of $0.22, an $0.16 beat. Revenues grew 2.2% year-over-year (YoY) to $6.16 billion, falling short of analyst estimates for $6.21 billion. The Company administered approximately 4.7 million COVID-19 vaccines and 766,000 COVID tests in the quarter.
What is the EPS for Rite Aid 2022?
Rite Aid issued confusing and dramatically lower forward guidance for fiscal full-year 2022 with EPS ranging between (-$0.79) to (-$0.24) versus $0.80 consensus analyst estimates. Total revenues are expected to come in between $15.1 billion to $25.5 billion versus $24.66 billion analyst estimates. There is no more benefit from COVID-19 booster or for vaccination for children under 12. Acute scripts and front end OTC sales are expected below historical levels and it assumes there will be no more lockdowns. This caused a downgrade from JPMorgan Chase to Underweight with a price target of $12 from $21 the following day June 25, 2021.
