Should you buy Rite Aid after the earnings beat? | Invezz
Invezz is an independent platform with the goal of helping users achieve financial freedom. In order to fund our work, we partner with advertisers who compensate us for users that Invezz refers to their services. While our reviews and assessments of each product on the site are independent and unbiased, brands may pay to appear higher up our table rankings or place ads in specific areas of the site. The order in which products and services appear on Invezz does not represent an endorsement from us, and please be aware that there may be other platforms available to you than the products and services that appear on our website. Read more about how we make money >
Jun 24, 2021
- Rite Aid stock pulled back on Thursday after announcing its most recent quarterly results.
- The company’s EPS beat expectations while revenue came in lower than expected.
- Is the pullback an opportunity to buy RAD shares?
Rite Aid Corp (NYSE:RAD) shares plunged 13% Thursday morning after the company’s most recent quarterly report. RAD reported earnings the beat expectations on Thursday morning, but revenues came short of estimates. Shares fell after the company issued tepid guidance on fiscal 2022 revenue and earrings.
RAD earnings snapshot and outlook
Rite Air reported $0.38 adjusted earnings per share for the most recent quarter, beating the non-GAAP consensus analyst expectation of $0.22 with $0.16. However, the company’s revenue came short of expectation after posting $$6.16 billion. The market expected a top line of $6.21 billion.
Are you looking for fast-news, hot-tips and market analysis?
Sign-up for the Invezz newsletter, today.
RAD also said it expects to make a fiscal-year 2022 net loss in the range of $0.79-$0.24 per share compared to a consensus analyst estimate of $-0.46. It expects revenue to be approximately $25.1-$25.5 billion, slightly higher than the average analyst expectation of $24.66 billion.
Technical overview: RAD seems under pressure
Technically, RAD shares appear to have recently pulled back despite a relatively positive quarterly report. The company’s guidance for next year indicates caution. The current pullback could continue before the next rebound.
Investors can target extended pullbacks at approximately $15.73 and $12.45. The key resistance levels are $19.40 and $22.69.
Bottom line: Rite Aid looks poised for more downward movement
RAD shares seem destined for more declines in the short term as investors continue to digest the latest earnings report. It may be best to wait for a while before taking a bullish position.
Where to buy right now
To invest simply and easily, users need a low-fee broker with a track record of reliability. The following brokers are highly rated, recognised worldwide, and safe to use: