Rite Aid Corp. (NYSE: RAD) released estimates for its fiscal 2019 full year before the markets opened on Monday. The company now expects to see a net loss per share in the range of $0.04 to flat, down from the previously stated earnings per share of $0.02 to $0.06. The consensus estimates call for $0.03 in EPS and $21.74 billion in revenue for the 2019 fiscal year.
The company also expects to see adjusted EBITDA in a range of $540 million to $590 million, updated from the previously disclosed range of between $615 million and $675 million.
In the release the company stated:
Based upon recent generic drug bid activity and on anticipated generic drug market conditions for the balance of the year, generic drug purchasing efficiencies are expected to be significantly below Rite Aid’s previous experience and will not meet the company’s expectations for the year. The company now expects generic drug purchasing efficiencies to be approximately $80 million less than when Rite Aid established its fiscal 2019 outlook.
Note that the company’s outlook for sales and same-store sales remains unchanged as sales, prescription count growth and pharmacy reimbursement rates continue to be in line with expectations. The expectations for capital expenditures also remain unchanged.
Shares of Rite Aid traded down more than 10% to $1.64 shortly after Monday’s opening bell. The consensus analyst price target is $1.97 and a 52-week trading range is $1.38 to $2.80.