Spartan Stores, Inc. Earnings Cheat Sheet: Profit Rises for Fourth Straight Quarter

Spartan Stores, Inc. (NASDAQ:SPTN) reported its results for the first quarter. Spartan Stores, Inc. is a regional grocery distributor and grocery retailer, operating mainly in Michigan and Indiana. It operates two reportable business segments: Distribution and Retail.

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Spartan Stores Earnings Cheat Sheet for the First Quarter

Results: Net income for Spartan Stores, Inc. rose to $6 million (26 cents per share) vs. $5.99 million (26 cents per share) in the same quarter a year earlier. This marks a rise of 0.7% from the year earlier quarter.

Revenue: Rose 4.4% to $602.6 million from the year earlier quarter.

Actual vs. Wall St. Expectations: SPTN reported adjusted net income of 29 cents per share. By that measure, the company fell short of mean estimate of 30 cents per share. It beat the average revenue estimate of $589.4 million.

Quoting Management: “We are pleased that our first quarter fiscal 2012 financial performance was in line with our expectations,” stated Dennis Eidson, Spartan’s President and Chief Executive Officer. “We achieved year over year sales growth for the third consecutive quarter in our distribution segment while continuing to enhance our value proposition to the consumer and tightly managing the controllable aspects of our business which resulted in improved profitability in our retail segment.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the fourth quarter of the last fiscal year, net income rose more than twofold and in the third quarter of the last fiscal year, the figure rose 45.3%.

Gross margin shrank 1.1 percentage points to 20.8%. The contraction appeared to be driven by increased costs, which rose 5.9% from the year earlier quarter while revenue rose 4.4%.

The company fell short of estimates last quarter after beating the mark the quarter before with net income of 34 cents versus a mean estimate of net income of 29 cents per share.

The company’s revenue has now risen for two straight quarters. In the fourth quarter of the last fiscal year, revenue increased 2.3% to $571.5 million from the year earlier quarter.

Competitors to Watch: Nash-Finch Company (NASDAQ:NAFC), SYSCO Corporation (NYSE:SYY), United Natural Foods, Inc. (NASDAQ:UNFI), AMCON Distributing Co. (AMEX:DIT), Synergy Brands, Inc. (SYBR), Core-Mark Holding Co., Inc. (NASDAQ:CORE), SUPERVALU INC. (NYSE:SVU), G. Willi-Food Intl. Ltd. (NASDAQ:WILC), The Kroger Co. (NYSE:KR), and Weis Markets, Inc. (NYSE:WMK).

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(Source: Xignite Financials)

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