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Why Jim Cramer Is Staying Away From Rite Aid

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Rite Aid  (RAD)  was under pressure after the company estimated that it would, for the fiscal year 2021, post a net loss and lower adjusted EBITDA.

The company now expects adjusted earnings before interest, taxes, depreciation, and amortization to range from $425 million to $435 million.

The revised full-year estimates were prompted because a "soft" cold and flu season hurt fourth-quarter results, President and Chief Executive Heyward Donigan said in a statement.

Other factors included COVID-19 prompting customers to defer elective procedures, hurting prescriptions for acute care. And inclement weather hurt Rite Aid's supply chain and company sales.

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