Pharmerica Tumbles 22.5% On Earnings Miss (PMC)

Shares of Pharmerica Corporation PMC are trading down 22.5% at $9.86 per share during the Friday afternoon trading session. The day's trading range for shares of Pharmerica Corporation has been between $9.30 and $10.13 per share. Analysts covering the company's stock give it a consensus price target of $19 per share. Volume of 900,000 shares is already more than 3 times the daily average volume of 252,000 shares. Pharmerica Corporation (PMC) announced after the Thursday trading session that it missed consensus Wall Street earnings estimates, while beating revenue expectations. The company announced 2nd quarter earnings per share of 30 cents, on revenue of $460.6 million. According to a survey of analysts by Thomson Reuters, the average Wall Street estimate called for earnings of 33 cents per share, on revenue of $457.17 million. The company forecast full year earnings in the range of 78 cents to 95 cents per share, on revenue of $1.765 billion to $1.81 billion. Chief executive officer Gregory S. Weishar said, "The second quarter proved unexpectedly challenging. Generic reimbursement pressures accelerated, leading to margin erosion, which significantly impacted earnings. Over the past several quarters, payor reimbursement policy for generics has become more aggressive, both in terms of the frequency of price changes and price levels. PharMerica’s exposure has increased due to its success in driving client cost-savings through increased generic drug usage, currently at about 75% of total prescriptions dispensed. In addition, we recorded a $5 million pre-tax charge in the second quarter to reserve for certain claims arising prior to the 2007 formation of PharMerica." Read more from Benzinga's Company news.