SUPERVALU Earnings: Here’s Why Investors are Buying Shares Now
SUPERVALU Inc. (NYSE:SVU) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 15.36%.
SUPERVALU Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased 26.32% to $0.14 in the quarter versus EPS of $0.19 in the year-earlier quarter.
Revenue: Decreased 51.29% to $5.16 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: SUPERVALU Inc. reported adjusted EPS income of $0.14 per share. By that measure, the company beat the mean analyst estimate of $0.06. It missed the average revenue estimate of $5.17 billion.
Quoting Management: “Our first quarter was highlighted by a renewed focus on driving sales and cash in all segments of our business and I’m pleased with the progress we made, especially the sequential improvement in sales trends from the fourth quarter of fiscal 2013 in each of our business segments,” said Sam Duncan, SUPERVALU’s president and chief executive officer. “We have a good foundation, strong leadership team, improved debt maturity profile, and achievable goals across each operating segment.”
Key Stats (on next page)…
Revenue decreased 154.61% from $9.45 billion in the previous quarter. EPS increased to $0.14 in the quarter versus EPS of $-0.14 in the previous quarter.
Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.01 to a profit $0.04. For the current year, the average estimate has moved down from a profit of $0.4 to a profit of $0.29 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)