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Rite Aid Drops After Forecasting Fiscal 2022 Loss

Rite Aid shares fell after the drugstore chain forecast a full-year loss. Analysts were expecting Rite Aid to report a profit this fiscal year.
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Shares of Rite Aid  (RAD) - Get Report dropped after the drugstore chain forecast a fiscal 2022 adjusted loss and revenue guidance that is below analyst estimates. 

For fiscal 2022, the company now projects an adjusted net loss of 24 cents to 79 cents a share on revenue of $25.1 billion to $25.5 billion. 

Analysts surveyed by FactSet were expecting the Camp Hill, Pa., company to earn 64 cents a share on revenue of $24.7 billion in the year.. 

Shares of Rite Aid at last check were off 13% at $17.84. 

Explaining the projection, Rite Aid said acute-care prescriptions and front-of-store over-the-counter sales "will be below historical levels" as the company does not expect "a full recovery in cough, cold and flu results." 

The outlook also assumes that it won't be called on to provide additional COVID-19 boosters or vaccinations of children under 12.

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And the company said it would increase investments in retail wages this fiscal year.

Reports say that as the pandemic has eased, competition among retail stores for staffing has sharpened considerably.  

For the first quarter, the company reported earnings of 38 cents a share on revenue of $6.16 billion. 

Analysts in the FactSet survey were expecting earnings of 28 cents a share on revenue of $6.21 billion. 

"Our results improved sequentially through the first quarter, and we have momentum in several areas of our business as the country began taking meaningful steps towards a post-pandemic world," Chief Executive Heyward Donigan said in a statement.

The company said it delivered nearly 4.7 million COVID-19 vaccines in the first quarter and has provided over 6 million COVID-19 vaccine shots since it began administering them late in the previous fiscal year.