Ain Holdings Inc. shares fell sharply Monday morning after the Japanese pharmacy operator’s first-quarter net profit fell short of analysts’ expectations.
The company’s shares were recently 10% lower at 6,940 yen after falling as much as 11% earlier.
Ain said Friday after market close that net profit rose 30% from a year earlier to Y1.70 billion ($12.1 million) for the quarter ended July. That missed the estimate of Y1.77 billion expected in a poll of analysts by FactSet.
Revenue increased 8.6% to Y81.47 billion.
Operating profit from its pharmacy business fell 5.4% to Y4.49 billion, undershooting the company’s own target of Y5.28 billion, as selling, general & administrative expenses increased more sharply than revenue.
Ain maintained its earnings forecasts for the fiscal year ending April 2023. It expects revenue to climb 15% to Y363.00 billion and net profit to rise 55% to Y11.00 billion.
