RAD - Why Rite Aid Stock Is Rebounding Today
Shares of Rite Aid (NYSE: RAD) had plunged 49% as of the market close on Wednesday. However, the pharmacy stock was rebounding by 5.3% as of 11 a.m. ET on Thursday and had risen as much as 21.5% earlier in the day. Investors cheered Rite Aid's fourth-quarter update, which was announced before the market opened.
Rite Aid reported fourth-quarter revenue of $6.07 billion, up 2.5% year over year. This result beat the consensus estimate of $5.95 billion. The company posted a net loss in Q4 of $389.1 million, or $7.18 per share. The average analysts' estimate was for a net loss of $0.56 per share.
It wasn't those results, though, that caused investors to celebrate. The optimism stemmed instead from Rite Aid's fiscal 2023 guidance. The company expects revenue of between $23.1 billion and $23.5 billion. It anticipates a net loss for the year of between $167 million and $210 million. Rite Aid also projected adjusted earnings before interest, taxes, depreciation, and amortization ( EBITDA ) in fiscal 2023 of $460 million to $500 million.
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Why Rite Aid Stock Is Rebounding Today