Shares of Rite Aid (RAD) - Get Report tumbled in premarket trading on Thursday, though recovered at the opening bell, after the struggling pharmacy chain reported a fiscal first-quarter loss almost double from a year ago amid sluggish sales in its retail pharmacy and prescription segments.
Rite Aid stock plunged more than 10% in premarket trading on Thursday after the company reported an adjusted net loss from continuing operations of $7.5 million, or 14 cents a share, compared to adjusted net income of $1 million, or 2 cents a share, a year earlier.
Analysts polled by FactSet had been expecting a loss of 15 cents a share. Sales dipped to $5.37 billion in the quarter from $5.39 billion in the year-ago quarter.
The stock recovered at the opening of trading, gaining 4.5% at $7.43 by midday.
The company did maintain its fiscal 2020 outlook, which assumes a continued decline in prescription reimbursement rates being partially offset by continued prescription count growth, improvements in drug costs and continued expense control.
Rite Aid said it expects to post a net loss of between $170 million and $220 million, and adjusted per share results of between a 14-cent loss and 72-cent gain on sales of between $21.5 billion and $21.9 billion.
Starting Thursday, Amazon customers will have the option of picking up their packages from designated counters inside more than 100 Rite Aid stores. The service will be expanded to more than 1,500 of the chain's locations by the end of the year.