UPDATE: Rite Aid Posts Upbeat Q2 Profit, Lowers FY15 Forecast

Shares of Rite Aid (NYSE: RAD) dropped around 5.8% in pre-market trading after the company lowered its FY15 earnings outlook. However, the company reported better-than-expected second-quarter earnings.Rite Aid now projects FY15 earnings of $0.22 to $0.33 per share, versus its earlier outlook of $0.30 to $0.40 per share. It now expects adjusted EBITDA of $1.2 billion to $1.275 billion, versus its earlier forecast of $1.275 billion to $1.35 billion. The company also narrowed its sales forecast to $26 billion to $26.3 billion, from $26 billion to $26.5 billion.The Camp Hill, Pennsylvania-based company posted quarterly net income of $127.8 million, or $0.13 per share, versus $32.8 million, or $0.03 per share, in the year-ago period. Its revenue rose to $6.5 billion from $6.3 billion. However, analysts were expecting earnings of $0.06 per share on revenue of $6.47 billion.Same store sales climbed 4.1% in the quarter, consisting of a 1.1% rise in front-end sales and a 5.6% gain in pharmacy sales.Adjusted EBITDA rose to $364.2 million from $341.6 million. Rite Aid located 5 stores, remodeled 117 stores and expanded 1 store in the quarter. It also opened 1 store and closed 10 stores during the quarter.Rite Aid Chairman and CEO John Standley said, “Heading forward, while we believe that our key initiatives will continue to drive top-line growth, we are revising our guidance based on lower than anticipated pharmacy margin in the second half of Fiscal 2015. As we navigate these headwinds, we will remain focused on growing our business, generating continued operational efficiencies and positioning our associates to deliver a consistently outstanding experience for our customers.”Rite Aid shares tumbled 5.87% to $6.25 in pre-market trading.