SUPERVALU Earnings: Here’s Why Shares are Down Now

SUPERVALU Inc. (NYSE:SVU) had a loss and missed Wall Street’s expectations, AND 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 down 2.24%.

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SUPERVALU Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $-0.14 in the quarter versus EPS of $0.38 in the year-earlier quarter.

Revenue: Decreased 52.74% to $3.89 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: SUPERVALU Inc. reported adjusted EPS loss of $0.14 per share. By that measure, the company missed the mean analyst estimate of $0.18. It missed the average revenue estimate of $7.86 billion.

Quoting Management: “This past quarter was largely about transitioning the company for the future, and I am proud of the many things we accomplished in my first sixty days,” said Sam Duncan, SUPERVALU’s president and chief executive officer. “I brought in Ritchie Casteel as Save-A-Lot’s new president and CEO, and he has already right-sized that organization’s overhead and, along with me, met with a number of licensees to understand what we can do to help drive sales and improve the overall operating model.”

Key Stats (on next page)…

Revenue decreased 50.84% from $7.91 billion in the previous quarter. EPS decreased to $-0.14 in the quarter versus EPS of $0.03 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.1 to a profit $0.09. For the current year, the average estimate has moved down from a profit of $0.43 to a profit of $0.42 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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