Rite Aid Drops 7% On Revenue Miss

Shares of retail drugstore chain Rite Aid Corporation (RAD) are falling more than 7% in the morning trade on Thursday after the company’s second-quarter revenue missed analysts’ view.

Revenues from continuing operations in the second quarter increased 2.2% to $6.11 billion from $5.98 billion last year, however, missed the average estimate of analysts polled by Thomson Reuters of $6.21 billion.

Net loss from continuing operations in the quarter widened to $100.3 million or $1.86 per share from net loss of $13.2 million or $0.25 per share in the same quarter a year ago.

Excluding items, adjusted loss from continuing operations was $22.0 million, or $0.41 per share. The consensus estimate was for $0.48 loss per share.

Looking forward to the full year, revenue is expected to be between $25.1 billion and $25.5 billion and adjusted loss per share to be in the range of $0.90-$0.53. Analysts expect the company to report loss of $0.63 per share on revenue of $25.13 billion.

RAD, currently at $14.14, has traded in the range of $8.86- $32.48 in the last one year.

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