Nash Finch Earnings: Here’s Why Investors are Ambivalent Now

Nash Finch Co. (NASDAQ:NAFC) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.

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Nash Finch Co. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 52.38% to $0.2 in the quarter versus EPS of $0.42 in the year-earlier quarter.

Revenue: Rose 3.36% to $1.09 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Nash Finch Co. reported adjusted EPS income of $0.2 per share. By that measure, the company beat the mean analyst estimate of $0.14. It missed the average revenue estimate of $1.11 billion.

Quoting Management: “We are pleased with the increase in total company sales over last year, which was driven by sales increases in our combined food distribution and retail segments” said Alec Covington, President and CEO of Nash Finch. “Adjusted EBITDA came in slightly better than we expected for the quarter. We are continuing to see pressure on gross margins in the military segment from lower contractual margin rates and lower food price inflation than the first quarter last year.”

Key Stats (on next page)…

Revenue decreased 6.72% from $1.17 billion in the previous quarter. EPS increased 33.33% from $0.15 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.69 to a profit $0.49. For the current year, the average estimate has moved down from a profit of $2.42 to a profit of $1.88 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at]