Rite Aid Corporation (RAD) stock announced fiscal operating results for the first fiscal quarter ended May 29, 2021, after which the RAD stock price saw a downtrend of 12.06% to drop at $17.93 a share at the time of this writing. Rite Aid Corporation is operating as a chain of retail drug stores in the United States through its subsidiaries. Let’s discuss the recent events in detail.

First Quarter Results:

• Rite Aid Corporation generated $6.16 billion in revenue from its continuing operations in the reported quarter which is $0.13 million higher than the same period of the prior year. The Retail pharmacy segment caused increase growth sales while sales from shrank in the reported quarter.
• RAD suffered a net loss of $13.1 million, or $0.24 per share in the first quarter which is significantly lesser than the $72.7 million, or $1.36 per share in the same quarter of last year.
• RAD stock reported Adjusted EBITDA of 138.9 million or 2.3% of revenues from its continuing operations as compared to $107.4 million or 1.8% of revenues reported in the same tenure of the previous year.
• Revenues from the retail pharmacy segment from the continuing operations were 5.5% higher than the same period of the prior year and adjusted EBITDA from the continuing operations reached $94.9 million in the reported quarter from $63.0 million in the same quarter of last year.
• RAD stock’s revenue from the pharmacy segment services reduced by 5.3% in the first quarter to drop at $1.9 billion while adjusted EBITDA of $44.0 million from continuing operations was flat to the previous year’s first quarter.

Fiscal 2022 Outlook:

• RAD stock projected its revenues for fiscal 2022 to be between $25.1 billion and $25.5 billion.
• Rite Aid’s pharmacy segment revenue is estimated to be in the range of $7.9 billion and $8.0 billion.
• Net loss for the RAD stock is estimated between$138 million to $175 million.
• RAD stock anticipated adjusted EBITDA between $440 million and $480 million.
• Net loss between $0.24to $0.79 is estimated by the RAD stock for fiscal 2022.
• $300 million capital expenditures for the RAD stock are estimated for fiscal 2022.

Conclusion:

Though the financial results for the first quarter of the RAD stock improved over the year however it seems that investors are not happy with the outlook for fiscal 2022. In a nutshell, investors need to know the nitty-gritty of the stock before making any decision.