Safeway Earnings: What Investors Should Watch

Safeway (NYSE:SWY) will report earnings before markets open on Thursday, July 18th. Safeway Inc. operates a retail food and drug chain in the U.S. and Canada. The Company also has a network of distribution, manufacturing, and food processing facilities. Safeway’s retail operations are located in California, Oregon, Washington, Alaska, Colorado, Arizona, Texas, the Chicago metropolitan area and the Mid-Atlantic region, British Columbia, Alberta and Manitoba/Saskatchewan.

Here is your Cheat Sheet to Safeway Earnings:

Earnings Expectations: Analysts expect earnings of $0.51 per share on revenues of $10.45 billion. Currently, the company’s P/E ratio stands at 9.33.

Analyst Trends:

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 $0.48 to a profit $0.46. For the current year, the average estimate is a profit of $2.31, which is better than the estimate ninety days ago.

Earnings Trends:

Here’s how Safeway has been performing on an annual basis:

Fiscal Year 2008 2009 2010 2011 2012
Revenue ($) in millions 44,104 40,851 41,050 43,630 44,207
Diluted EPS ($) 2.21 -2.66 1.55 1.49 2.40

Next, our CHEAT SHEET investing framework asks us to drill down to the recent quarterly data:

Quarter Jun. 30, 2012 Sep. 30, 2012 Dec. 31, 2012 Mar. 31, 2013
Revenue ($) in millions 10,386.90 10,049.10 13,767.40 9,994.00
Diluted EPS ($) 0.51 0.66 1.02 0.49

Past Performance:
Safeway has beat analyst estimates 3 times in the past four quarters. Shareholders could expect a boost if the company beats estimates.

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