POAHY - Rite Aid (RAD) Stock Tumbles After Cutting Full-Year Guidance
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Rite Aid (NYSE:RAD) stock is falling on Thursday after the pharmacy company updated its guidance for the fiscal full year of 2023.
That new guidance starts with the company expecting a net loss of $520.3 million to $477.3 million for the year. It’s also looking for adjusted losses per share between $1.52 and 97 cents. For the record, Wall Street is expecting an adjusted net loss per share of $1.39 for the year.
Rite Aid also notes that its new Adjusted EBITDA outlook ranges from $450 million to $490 million. That’s a drop from its prior guidance of $460 million and $500 million.
According to Rite Aid, several factors are behind its new guidance. That includes goodwill impairment charges in the Pharmacy Services Segment. It also cites increased impairment charges from closed stores as another reason for the update.
Adding to that, cautious consumer demand is another reason for its new outlook. Finally, the company notes that continued supply chain problems are also having an effect on its business.
RAD’s CEO Addresses the New Guidance
Heyward Donigan, president and CEO of Rite Aid, said the following about the update.
“As we look to the second half of the year, we expect continued pressure on consumer spending and supply chain challenges. At the same time, we are ready to meet a high demand for immunizations, while driving continued strong performance at Elixir and further SG&A expense reductions.”
RAD stock is down 28.3% as of Thursday morning.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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