Spartan Stores Second Quarter Earnings Sneak Peek

Spartan Stores, Inc. (NASDAQ:SPTN) will unveil its latest earnings on Wednesday, October 24, 2012. Spartan Stores is a regional grocery distributor and grocery retailer, operating mainly in Michigan and Indiana.

Spartan Stores, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 46 cents per share, a decline of 4.2% 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 47 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 46 cents during the last month. Analysts are projecting profit to rise by 1.4% compared to last year’s $1.37.

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 28 cents per share versus a mean estimate of net income of 27 cents per share.

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A Look Back: In the first quarter, profit fell 41.4% to $6 million (27 cents a share) from $10.3 million (45 cents a share) the year earlier, but exceeded analyst expectations. Revenue fell 2.5% to $603.9 million from $619.6 million.

Stock Price Performance: Between July 25, 2012 and October 18, 2012, the stock price fell $1.84 (-10.9%), from $16.91 to $15.07. The stock price saw one of its best stretches over the last year between June 26, 2012 and July 5, 2012, when shares rose for seven straight days, increasing 8% (+$1.37) over that span. It saw one of its worst periods between February 3, 2012 and February 13, 2012 when shares fell for seven straight days, dropping 9.5% (-$1.80) over that span.

Analyst Ratings: There are mostly holds on the stock with four of six analysts surveyed giving that rating.

Key Stats:

On the top line, the company is looking to get back on the right track after last quarter’s drop snapped a string of revenue increases. Revenue rose 2% in the fourth quarter of the last fiscal year and 39.5% in the third quarter of the last fiscal year before falling in the first quarter.

Wall St. Revenue Expectations: Analysts predict a rise of 1.4% in revenue from the year-earlier quarter to $611.3 million.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.21 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term. The company improved this liquidity measure from 1.13 in the fourth quarter of the last fiscal year to the last quarter driven in part by an increase in current assets. Current assets increased 7.9% to $226.1 million while liabilities rose by 1.1% to $187 million.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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