The Pantry Inc. has needed to reissue it’s financial forecast for the 2007 year for the third time since November, sending the price of shares down more than 11%, reported Reuters.
The main reason for this change stems from an evaporation of gas margins the store has been experiencing due to rising gas prices and high credit card fees that eat away at gasoline profitability. Gasoline sales make up almost 75% of the chain’s total revenue.
For 2007, the company has seen earnings of $1.65 to $1.80 a share, down from its prior view of $2.30 to $2.40 a share. The Pantry sees third-quarter earnings of 45 cents to 50 cents a share, including items. Analysts on average expect the company to earn 97 cents a share for the third quarter, and $2.26 a share for fiscal 2007, both before special items, according to Reuters Estimates.