Grocery retailer Safeway (NYSE:SWY), the second largest supermarket chain in the United States, announced 2012 guidance that was way ahead of analysts’ estimates, sending its shares skyward in pre-market trading on Tuesday.
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The company expects to earn $1.90 to $2.10 a share in 2012 against the street expectations of $1.88. According to the company’s estimate sales could be higher by 1 to 2 percent. It expects to incur capital outlays of about $900 million during the year.
Safeway CEO Steve Burd said, “With 87% of our store base remodeled into Lifestyle stores, we believe we have the freshest asset base in the supermarket industry. When you combine all this with our differentiated offering, we believe we are very well positioned for future growth.”
The company operates Safeway, Vons and Dominick’s stores.
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