To: Sir Auric Goldfinger who wrote (63 ) 7/3/2001 12:24:10 PM From: Sir Auric Goldfinger Respond to of 103 Yes Isaac, like all of the pigs you fondle, it is just a matter of time: "Priority Healthcare Falls on Lower 2nd-Qtr Estimate 2001-07-02 16:22 (New York) Lake Mary, Florida, July 2 (Bloomberg) -- Shares of Priority Healthcare Corp. fell 15 percent after the specialty pharmacy and drug distributor said second-quarter earnings were lower than estimated, partly because of product delays and lower interest income. The shares fell $4.14 to $24.14. Before today, Priority had dropped 31 percent this year. Profit was 4 cents to 6 cents a share less than the consensus forecast, the company said on a conference call. The company had been expected to earn 22 cents a share, the average estimate of analysts surveyed by First Call/Thomson Financial. Chief Executive Robert Myers, who didn't take questions on the call, said the six interest-rate reductions by the Federal Reserve this year reduced interest income by about $1 million, or ``roughly 1 cent to a cent and a half.'' Priority Healthcare provides pharmaceutical services for patients with chronic diseases or genetic disorders that require complex therapy. The Lake Mary, Florida-based company will report second-quarter results on July 19. Changes in the way insurers reimbursed Priority also affected the results as `` more products are being reimbursed out of pharmacy benefit managers instead of major medical benefits,'' bringing in lower fees, First Union Securities Inc. analyst Seth Teich said. He said the company's stock price reflects the news and raised his rating on the stock to ``strong buy'' from ``buy'' today. Merrill Lynch cut its intermediate-term rating on the stock to ``neutral'' from ``accumulate.'' Priority said it is taking charges for the quarter related to an investment in closely held software maker Cytura Corp. and expenses related to the acquisitions of infertility pharmacy Freedom Drug and biopharmaceutical distributor Physicians Formulary International Inc. The company also expects to take charges related to recently announced partnerships and bad debt. These charges are likely to further reduce earnings ``by a significant amount,'' Myers said in the statement. (Priority Healthcare's conference call can be accessed at the investor relations page on the Web site,priorityhealthcare.com ) --Ambre Brown Morley in the Princeton newsroom (609) 279-4016, or at amorley1@bloomberg.net, with reporting by Bob Kuzbyt in Princeton/pas/ tab/jcn Story illustration: To graph the performance of the company's shares, see {PHCC US <Equity> TRA D <GO>}.