Rite Aid Corporation (RAD) stock slumped 16.24% more in the after-hours trading on Wednesday, March 24, 2021, after going down 2.38% in the morning session. Let’s try to figure out the reasons behind RAD stock bashing.
RAD update its 2021 Fiscal outlook and Numbers:
On March 24 March 24,2021, RAD updated its guidance for the fiscal year ended February 27, 2021. The company said that resultsare significantly impacted by challenging weather conditions, a soft cough, cold and flu season and an ongoing COVID-19pandemic.
The company revised its adjusted EBITDA,which has $50 million to $60 million impacts for the upcoming quarter results.
Outlook for Fiscal 2021
- RAD now lookingrevenues to be approximately $24.0 billion
- Rite Aid Corporation is expecting a Net loss to be between $90 million and $100 million. Previously it was expecting $89 million to $114 million net loss for the 2021 fiscal year.
- It is expecting an adjusted EBITDA to be between $425 million and $435 million.In December,RAD estimated adjusted EBITDA tobe between $490 million to $520 million.
- The company is expecting 315 million in capital expenditures.
Schedule of fourth-quarter financialresults announcement:
Rite Aid Corporation set a date to releaseits fourth quarter’s financial results ended February 27, 2021. The company is going to announce the results on Thursday, April. 15, 2021.
Rite Aid’s management team will hold an analyst call at 8:30 a.m. Eastern Time on Thursday, April 15, 2021
About the company
Rite Aid Corporation is an American drugstore chain based in Camp Hill, Pennsylvania. It was founded in 1962 in Scranton, Pennsylvania, by Alex Grass under Thrif D Discount Center. The company ranked No. 150 in the 2020 Fortune 500 list of the largest United States corporations by total revenue and is on the front lines of delivering healthcare services and retail products to more than 1.6 million Americans daily. RAD provides health products and services for the entire family through its 2,400 retail pharmacy locations across 17 states.
Conclusion:It always hurts any company’s stock when a company lower its financial estimates,which happened with RAD stock. It can further slip in the coming days.