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CAMP HILL, Pa. — Rite Aid Corp. has pared its fiscal 2015 earnings forecast, citing factors affecting pharmacy margins.
Rite Aid Corp. has pared its fiscal 2015 earnings forecast, citing factors affecting pharmacy margins.
The drug chain said the lower full-year outlook reflects revised first quarter guidance for reduced adjusted EBITDA (earnings before interest, taxes, depreciation and amortization), due mainly to higher-than-anticipated drug costs from a delay in realizing generic drug purchase price reductions plus a greater-than-anticipated reduction in reimbursement rates. Generic purchase price reductions also are expected for the remainder of the year.
For fiscal 2015, Rite Aid now projects adjusted EBITDA of between $1.275 billion and $1.350 billion and net income of between $298 million and $408 million, or 30 cents to 40 cents per diluted share.
In its previous 2015 guidance, the chain forecast adjusted EBITDA of $1.325 billion to $1.4 billion and net earnings of $313 million to $423 million, or 31 cents to 42 cents per diluted share.
With the adjusted guidance, analysts estimate Rite Aid’s 2015 earnings at 35 cents per share, with projections ranging from a low of 30 cents to a high of 41 cents, according to Thomson Financial.
