Retail drugstore chain operator Rite Aid Corporation (RAD) offers various health products and services through nearly 2,450 retail pharmacies across 17 states. Shares of RAD jumped 15% last Thursday morning, thanks to the company’s strong fourth-quarter operating results. Its pharmacy sales rose 12% year-over-year, driven by an increase in prescription sales and same-store sales. Moreover, investor optimism surrounding RAD’s better-than-expected fiscal 2023 outlook could be a boon for the stock.
However, RAD’s stock has given up its gain and is now trading 4.4% lower than where it closed on Wednesday night, before Q4 earnings were released. Although the healthcare services provider reported guidance ahead of analyst expectations, its wider-than-expected net loss driven by non-cash impairment charges could significantly deter investors.
