Rite Aid stock jumps after revenue beat and guidance ahead of Street expectations

Rite Aid Corp. shares rose 6.8% in Thursday premarket trading after it reported fourth-quarter revenue that beat consensus and gave guidance ahead of Street expectations. The pharmacy retailer posted a net loss of $389.1 million, or $7.18 per share, after a loss of $18.5 million, or 34 cents per share, last year. Adjusted losses were $1.63 per share, wider than FactSet consensus for a loss of 43 cents per share. Revenue of $6.065 billion were up from $5.917 billion last year and well ahead of the FactSet consensus for $5.470 billion. Rite Aid attributed the net loss growth to a goodwill impairment charge of $229.0 million in the pharmacy services segment. Other factors include impairment charges from store closures, leasebacks on stores and distribution centers and a gain from the acquisition of Bartell Drugs the year prior. Same-store sales from continuing operations in the retail pharmacy segment were up 7.8%. For fiscal 2023, Rite Aid is guiding for revenue between $23.1 billion and $23.5 billion and adjusted net loss between 53 cents and $1.06 per share. The FactSet consensus is for revenue of $21.409 billion and a loss of $1.22 per share. Rite Aid stock took a hit last week after Deutsche Bank slashed its target price to $1 from $16. Rite Aid stock has plunged nearly 61% over the past year. In comparison, the benchmark S&P 500 index has gained 7.8%.

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