Why Rite Aid Stock Is Plunging Today

What happened? Rite Aid shares (NYSE:RAD), were down 14.3% as of Thursday morning at 11:22 EDT. This steep fall occurred after Rite Aid reported its fiscal 2022 first quarter results before the market opened. What are you waiting for? Investors weren't pleased with Rite Aid's results in the first quarter, as you might expect following today's healthcare stock sell-off. The company's revenue was $6.16 billion below the consensus estimate at $6.21 billion. Rite Aid's adjusted earnings, $0.38 per share, easily beat the $0.22 average analyst estimate. Rite Aid's full year guidance was the most disappointing. According to Rite Aid, the company expects a net loss of $0.79 to $0.24 per share. According to Wall Street consensus, the company will post adjusted earnings per share of $0.80 for the full year. What now? It is more important to think about a company's long term prospects than its performance in any one quarter. Heyward Donigan, Rite Aid CEO, stated that Rite Aid is on the right track and will benefit from "a stronger economy" and "the reopening communities we serve."

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