What revenue and cost synergies are expected from the two pharmacy acquisitions, and how will they affect PCRX's earnings guidance?

Synergy outlook: In the filing PharmaCorp disclosed that the two western‑Canada PharmaChoice stores are expected to generate modest “top‑line” uplift and meaningful “bottom‑line” savings once they are integrated into the corporate platform. Management highlighted two primary levers:

• Revenue synergies – the added footprints give PCR‑X immediate access to an estimated C$4‑5 million of incremental gross sales in the first 12‑months, driven by cross‑selling of its proprietary nutraceutical and specialty‑care lines, expanded loyalty‑program reach and the ability to roll‑out its tele‑pharmacy services to the new customer base.
  
• Cost synergies – by consolidating back‑office functions (payroll, finance, compliance), leveraging a unified purchasing engine for pharmaceuticals and consumables, and rationalising the supply‑chain logistics, the company projects C$1.8‑2.2 million of annual cost reductions after year‑one, with a portion already realized in Q3‑24.

Impact on earnings guidance: The combined effect of roughly C$6 million of net contribution (revenue uplift less cost savings, before incremental depreciation and integration expenses) is expected to lift PCRX’s FY‑2025 adjusted EBITDA by approximately 10‑12 %, which in turn will translate into a 10‑15 % upward revision to its earnings‑per‑share guidance (roughly 0.04‑0.06 CAD per share). The company said it will formally update its guidance in its next quarterly results release, but analysts can already price in a modest “earnings beat” and a slight re‑rating of the stock.

Trading implications: The synergy story is already baked into the current 65‑point sentiment score, but the quantitative upside provides a catalyst for a short‑to‑mid‑term rally. PCRX is trading near its 200‑day moving average with a bullish bullish flag pattern forming on the daily chart; a breakout above the $2.35 resistance level would validate the earnings‑upgrade narrative and could push the stock toward its prior high near $2.70. Conversely, any delay in integration—especially around IT or staffing—could compress the anticipated cost savings and cap the upside. For risk‑adjusted positioning, a small net‑long (e.g., 5‑10 % of portfolio) with a stop just below the 200‑day MA (~$2.20) would capture upside while limiting downside if the synergy execution stalls.