RAD Rite Aid Corp

EDF

Utility Reduces Earnings Outlook

State-controlled power utility EDF cut its earnings outlook on expectations of lower nuclear output from an increase of plant outages.

EDF, which last week got the go-ahead from the British government to build the GBP18 billion ($23.5 billion) Hinkley Point nuclear plant in the U.K., said it expects earnings before interest, taxes, depreciation and amortization of between EUR16.3 billion ($18.2 billion) and EUR16.6 billion.

It previously had forecast a range of EUR16.3 billion to EUR16.8 billion. The French company already had lowered its nuclear output forecast in July, but had maintained its earnings target.

--Inti Landauro and William Horobin

RITE AID

Sales Fall Short of Expectations

Rite Aid Corp. said its sales came in below Wall Street estimates in its second quarter as pharmacy reimbursement-rate pressure and generic drugs cut into results.

Same-store sales decreased 2.5% in the quarter from a year ago as a 0.1% increase in retail sales was offset by a 3.6% decrease in pharmacy sales. The Camp Hill, Penn.-based company said new generic drugs, which are generally cheaper and less profitable, were responsible for much of the pharmacy decrease. The company also cited a "challenging reimbursement-rate environment."

In all, Rite Aid reported a profit of $14.8 million, or 1 cent a share, compared with a profit of $21.5 million, or 2 cents a share, a year earlier. Excluding certain items, adjusted per-share earnings fell to 3 cents from 6 cents a year earlier.

Revenue climbed 4.8% to $8.03 billion.

Analysts polled by Thomson Reuters had forecast adjusted earnings of 2 cents on $8.17 billion in revenue.

--Austen Hufford

AUTOZONE

Store Openings Boost Revenue

AutoZone Inc. said profit grew 6.4% in the final quarter of its fiscal year as the auto-parts retailer reported higher revenue, boosted in part by new store openings.

Sales at domestic stores open at leastayear rose 1% for the Memphis, Tenn., company, which has worked to increase inventory in part by opening so-called mega-hub locations. In the latest period, AutoZone opened 71 new stores and relocated two stores in the U.S., bringing its total to 5,297.

For its August quarter, AutoZone reported a profit of $426.8 million, or $14.30 a share, up from $401.1 million, or $12.75 a share, a year earlier. Revenue climbed 3.3% to $3.4 billion. Analysts polled by Thomson Reuters had projected profit of $14.25 a share on $3.43 billion in sales.

--Anne Steele

(END) Dow Jones Newswires

September 23, 2016 02:48 ET (06:48 GMT)

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