Soft guide sends Rite Aid down 6% – Rite Aid Corporation (NYSE: RAD)

Rite Aid (NYSE: RAD) is down 6.11% in morning trading following a Q4 revenue shortage and soft guidance.

The company expects a full-year turnover of $ 21.5B to $ 21.9B against $ 22.2B consensus, year-round EBITDA of $ 500M to $ 560M vs. $ 566M consensus and EPS of $ 0.01 to $ 0.04 against $ 0.02 consensus.

Management's update on FY20: "The company's outlook for fiscal policy 2020 takes on a decline in reimbursement rates in line with the decline in tax-related 2019. However, the company does not expect to be able to counteract these decreases with generic drug savings as in the previous year. a reduction of about $ 40 million in TBA fee revenue from WBA, which the company expects to offset the reduction in its SG & A expenses that were revealed last year, including the prospect of a $ 1[ads1]1 million increase in rental rates of the adoption of the new lease. "

Earlier: Rite Aid beats $ 0.02, misses revenue (April 11)