Rite Aid (NYSE:RAD) stock took a hit today after updating its outlook for the full year of fiscal 2019.
Rite Aid’s recent update to its outlook includes lowering its Adjusted EBITDA expectations to between $540 million and $590 million. The company’s prior outlook for fiscal 2019 Adjusted EBITDA had it ranging from $615 million to $675 million.
The outlook update from Rite Aid also includes its net loss now coming in between $125 million and $170 million. This is also a drop from the company’s previous net loss outlook for the year, which was ranging from $40 million to $95 million.
The final change to Rite Aid’s outlook for the full year of fiscal 2019 includes lowering its earnings per share expectations. It now expects losses per share of 4 cents to flat earnings per share for the quarter. The previous guidance was for earnings per share of 2 cents to 6 cents for the year. Wall Street is looking for earnings per share of 1 cent for the year.
Rite Aid says that the reason for its new outlook has to do with generic drug purchasing efficiencies for fiscal 2019. The company says it now expects this to be $80 million less than when it last released its outlook for the year.
Rite Aid notes that it isn’t updating its sales or same-store sales guidance for the fiscal full year of 2019. It says that these figures are still within range of its current guidance for the fiscal year.
RAD stock was down 10% as of Monday afternoon and is down 13% year-to-date.
As of this writing, William White did not hold a position in any of the aforementioned securities.