Rite Aid Earnings Down due to Reimbursement Rates and Drug Costs

Now watching

Next video starts in : 7 Play

Rite Aid Earnings Down due to Reimbursement Rates and Drug Costs

Rite Aid Earnings Down due to Reimbursement Rates and Drug Costs
Replay video
Up next

Rocky Start to Trading on Wall Street on Fed, China Worries

Unlock your personal NFL Now stream by signing in to NFL.com

Rite Aid Earnings Down due to Reimbursement Rates and Drug Costs

by TheStreet 0:54 mins

Rite Aid Earnings Down due to Reimbursement Rates and Drug Costs

by TheStreet 0:54 mins

Rite Aid shares are trading lower Thursday after the drugstore chain posted results which fell short of forecasts and said reimbursement rates were higher than anticipated drug costs. Rite Aid's first quarter earnings came in at just half of what they were a year ago at roughly $41 million - that's down from the close to 90-million dollars it earned in the same quarter last year. During the company's conference call, Rite Aid CEO John Standley said, 'As we transition to our new purchasing model, we expect lower pharmacy gross margin during the transition period because we're unable to negotiate lower drug costs as we normally would do to offset reimbursement rate pressure and generic drug cost increases.' Standley also expressed confidence that this strategic next step will lead to long-term success for the company.

TheStreet

Finance

  1. 2:25

    China's investors find safe haven in American real estate

  2. 14:01

    Chrysler not done with GM, Apple's new ad blocker and Disney stays quiet

  3. 3:06

    Fiat Chrysler's Marchionne says "unconscionable" to give up on GM deal -paper

  4. 4:45

    US stocks edge lower; energy shares reverse a slide

  5. 2:27

    Apple's iPhone ad block stirs up tension

  6. 2:15

    NYPD asks Disney to crack down on Times Square characters: report

Personal Finance

  1. 3:44

    A local man’s view on the real recovery of post-Katrina New Orleans

  2. A local man’s view on the real recovery of post-Katrina New Orleans

  3. 1:40

    How Much Money Do You Need to Be Rich? Kids' Answers Will Inspire You.

  4. 1:34

    Young people and startups are fueling New Orleans’ recovery after Hurricane Katrina

  5. 1:52

    Here's how smart investors will react to today's market drama

  6. 2:33

    In post-Katrina New Orleans, black men lift each other up

Market Movers

  1. 2:55

    Tesla implores White House to push China on auto rules

  2. 2:57

    Buffett's Berkshire takes $4.48 billion stake in Phillips 66

  3. 15:04

    Fed talk hits stocks; China stocks seeing red; Netflix loses 'Hunger Games'

  4. 2:24

    Hulu to become Epix's streaming partner after Netflix opts out

  5. 1:56

    PayPal boost; Staples/Office Depot move; Citi stock trading; Twitter upgrade

  6. 18:20

    Market's wild ride continues; Icahn's next big bet; Apple's Beats music in trouble?