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Rite Aid cuts full-year profit forecast for second time
September 18, 2014 / 11:28 AM / 3 years ago

Rite Aid cuts full-year profit forecast for second time

Sept 18 (Reuters) - Rite Aid Corp, the third largest U.S. drugstore chain, cut its full-year profit forecast for the second time this year as lower margins from its pharmacy business continue to eat into earnings.

Rite Aid shares fell nearly 9 percent in premarket trading on Thursday after the company also shaved the top end of its sales forecast.

Based upon current estimates for reimbursement rates and the lower profits expected from new generics and generic drugs that recently lost exclusivity, pharmacy business margins are expected to fall, the company said.

Rite Aid cut its profit forecast to 22-33 cents per share from 30-40 cents. It now expects sales of $26.0-$26.3 billion, compared with its prior forecast of $26.0-$26.5 billion.

The company said second-quarter net income attributable to shareholders quadrupled to $129.2 million and net sales rose 4 percent to $6.52 billion. (Reporting by Ramkumar Iyer in Bangalore; Editing by Savio D‘Souza)

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