Some magic was needed by investors. The earnings report would have helped. The pharmacy chain tried to put a positive spin on its earnings report. That's a familiar tune that makes investors cringe.
MarketBeat.com - MarketBeat The stock was viewed as a cautious buy by several experts in September 2020.
The lack of growth was obvious by the end of the year. It had to show investors how it could make money.
In the last two quarters, revenue and earnings have declined. Is Rite Aid stock going to recover?
Walgreens bought half of the stores from Rite-Aid for over $4 billion. At the time, the company had a debt load of $7 billion.
At the end of the last quarter, the company's debt load was about half of what it was. According to the company's documents, it has no debt until the year 2025. The company is optimistic that it will be free cash flow positive in the next few years.
Revenue is down from last year. On the one hand, it makes sense because the company has fewer stores, but if it used a significant portion of the $4.3 billion to pay off debt, the math shows that the company is still struggling to generate revenue.
At some point, the company will have to demonstrate that it can play offense.
The pharmacy benefits manager was going to be part of the growth plan. Unless the magic involves making $252 million disappear, the solution hasn't been a good one.
A change in our estimate of lives for next year led to the goodwill impairment change in the quarter.
Revenue for the company was down by 9%. The unit's profits increased by $48.9 million from $38.6 million. It did so because of an increase in operating expenses.
Two analysts give a "sell" rating to RAD. Analysts expect 40% to be a "BUY" rating. It is possible to have a negative sentiment about a stock.
Competition is growing and margins are getting tighter. Sometimes stocks are cheap because of something. Unless the company can show that it has a solid plan in place, investors may want to stay away.
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