Share of Rite Aid Corporation dropped 28% on September 29, 2022 after the company issued a disappointing Q2 report for 2022 and also reported a non-cash goodwill impairment charge of $252.2 million.
Following this news, Rite Aid stock plummeted 28% on September 29, 2022, causing significant harm to investors.
Why is Rite Aid Stock Dropping?
On Thursday, September 29, 2022, Rite Aid released its Q2 report for 2022. The pharmacy retailer reported revenue of $5.9 billion, lower than analysts’ estimate of $5.77 billion, and it reported an adjusted net loss per share of $0.63, worse than analysts’ estimate of $0.55 per share. In addition, Rite Aid lowered its guidance for 2023.
Much of Rite Aid’s loss was related to a non-cash goodwill impairment charge of $252.2 million related to its subsidiary, Elixir. However, on Rite Aid’s previous earnings call for Q1 2022, Elixir’s COO had stated, “we are still expecting to have the strongest selling season that we’ve had in several years at Elixir.”
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