Shares of drugstore chain, Rite-Aid Corp. (NYSE: RAD) went up in pre-market trading at the time of writing on Thursday after the company’s losses narrowed in Q1 to $0.73 per share versus an adjusted loss of $0.86 per share in the same period last year while analysts were expecting the company to report a loss of $1.50 per share.
The company’s revenues, however, declined to $5.65 billion in Q1 as compared to $6.01 billion in the same period last year but exceeding consensus estimates of $5.32 billion. Rite-Aid stated in its press release that this fall in revenues was driven by “largely due to the reduction in the Company’s Prescription Drug Plan (PDP) membership and the loss of commercial clients at Elixir. “
Looking forward, the company expects total revenues to be between $22.6 billion and $23 billion in FY24, while adjusted net loss is likely to be in the range of $4.29 and $4.78 per share. RAD reduced its FY24 adjusted EBITDA guidance by $10 million to be in the range of $330 million to $360 million.
RAD stock has not fared well this year, down by more than 50%.