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Rite Aid Shares Plunge 28 percent Following Q2 Results

Rite Aid (NYSE: RAD) shares fell more than 28% last Thursday following the company’s reported Q2 results, with EPS of ($0.63) coming in worse than the Street estimate of ($0.50). Revenue was $5.9 billion, better than the Street estimate of $5.77 billion. Core EBITDA was down 47% to about $15 million adjusting out the benefit of vaccines, which continue to decline.
According to the analysts at Deutsche Bank, the company’s core pharmacy business continues to erode, and improvements in the PBM segment may prove short-lived as the company stares down lower membership in 2023 due to a client loss.
For the full 2023-year, the company expects EPS to be in the range of ($1.52)-($0.97), compared to the Street estimate of ($1.39), and revenue in the range of $23.6-24 billion, compared to the Street estimate of $23.36 billion.

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