Rite Aid updates FY19 outlook
Camp Hill, Pa.-based Rite Aid has revised its outlook for fiscal year 2019, but the figures exclude the predicted impact of the company's proposed merger.
Camp Hill, Pa.-based Rite Aid has revised its outlook for fiscal year 2019, but the figures exclude the predicted impact of the company's proposed merger. Rite Aid updated the outlook it issued in April based on a steadier reimbursement rate climate, fees under the Walgreens Boots Alliance transition services agreement, generic drug purchasing, and other factors. Rite Aid said it expects its generics purchasing efficiencies to come in $80 million less than estimated in April, which affected its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), net loss, and adjusted net loss per diluted share estimates. The company now predicts adjusted EBITDA to stand between $540 million and $590 million, instead of the $625 million–$675 million it had forecast earlier this year. The company estimated its net loss will be between $125 million and $170 million, despite initially expecting a net loss of between $40 million and $95 million.