Safeway, Inc. Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Safeway, Inc. (NYSE:SWY) will unveil its latest earnings on Thursday, July 21, 2011. Safeway Inc. is a retail supermarket chain in North America. As a food and drug retailer, the company, with its subsidiaries, operates stores that offer a range of grocery products, general merchandise and specialty departments like pharmacies and coffee shops. It also owns and operates distribution, manufacturing, and food processing facilities. How Will the Food Supply Shortage Affect Commodities?>>

Safeway, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 39 cents per share, a rise of 5.4% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 41 cents. Between one and three months ago, the average estimate moved down, but it has been unchanged at 39 cents during the last month. For the year, analysts are projecting net income of $1.72 per share, a rise of 9.6% from last year.

Past Earnings Performance: The company’s quarterly results have come in above estimates for the last three quarters. Last quarter, the company booked profit of 29 cents per share versus a mean estimate of net income of 28 cents per share.

Savvy Investing Tip: Our CHEAT SHEET investing framework recommends only stocks with two straight quarters of earnings growth. Learn More >>

Wall St. Revenue Expectations: On average, analysts predict $9.92 billion in revenue this quarter, a rise of 4.2% from the year ago quarter. Analysts are forecasting total revenue of $42.69 billion for the year, a rise of 4% from last year’s revenue of $41.05 billion.

Analyst Ratings: Analysts are bearish on Safeway as seven analysts rate it as a sell, five rate it as a buy and eight rate it as a hold.

Key Stats:

The company’s revenue has now risen for two straight quarters. In first quarter, revenue increased 4.8% to $9.77 billion from the year earlier quarter. In the fourth quarter of the last fiscal year, the figure rose 0.9%.

Competitors to Watch: The Kroger Co. (NYSE:KR), Target (NYSE:TGT), Wal-Mart (NYSE:WMT), SUPERVALU INC. (NYSE:SVU), Winn-Dixie Stores, Inc. (NASDAQ:WINN), The Fresh Market Inc (NASDAQ:TFM), Arden Group, Inc. (NASDAQ:ARDNA), The Great Atlantic & Pacific Tea Co. (GAPTQ), Ingles Markets, Inc. (NASDAQ:IMKTA), Ruddick Corporation (NYSE:RDK), and Weis Markets, Inc. (NYSE:WMK).

Stock Price Performance: During May 18, 2011 to July 15, 2011, the stock price had fallen $1.37 (-5.5%) from $25.12 to $23.75. The stock price saw one of its best stretches over the last year between February 4, 2011 and February 17, 2011 when shares rose for 10-straight days, rising 6.8% (+$1.41) over that span. It saw one of its worst periods between April 27, 2011 and May 4, 2011 when shares fell for six-straight days, falling 5.1% (-$1.28) over that span. Shares are up $1.52 (+6.8%) year to date.

(Source: Xignite Financials)

Get Actionable Investing Insights: Check Out Wall St. Cheat Sheet’s newest Feature Trades of the Month!