SUPERVALU Earnings: Reports a Loss, Yet Shares Bounce

S&P 500 (NYSE:SPY) component SUPERVALU INC. (NYSE:SVU) swung to a loss in the second quarter, missing analysts’ forecast. SUPERVALU operates as a grocery retailer in the United States.

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SUPERVALU INC. Earnings Cheat Sheet

Results: Reported a loss of $111 million (52 cents per diluted share) in the quarter. SUPERVALU INC. had a net income of $60 million or 28 cents per share in the year-earlier quarter.

Revenue: Fell 4.6% to $8.04 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: SUPERVALU INC. reported 0 cents per share. By that measure, the company fell short of mean estimate of 18 cents per share. Analysts were expecting revenue of $8.08 billion.

Quoting Management: “We have accomplished a number of important steps since I became president and chief executive officer mid-way through the second quarter, including the successful refinancing of our credit facility, restructuring our executive leadership team, and announcing the closure of 60 stores,” said Wayne Sales, SUPERVALU’s president, chief executive officer, and chairman. “Our team is aggressively focused on four key strategic imperatives necessary to improve our business: driving profitable retail sales, growing Save-A-Lot, building our network of successful independent retailers, and reducing costs. I am excited by the progress we have made in defining our key strategies and specific initiatives within each segment of our business.”

Key Stats:

Revenue has fallen for the last four quarters. Revenue declined 4.7% to $10.59 billion in the first quarter. The figure fell 5% in the fourth quarter of the last fiscal year from the year earlier and dropped 4% in the third quarter of the last fiscal year from the year-ago quarter.

For two quarters in a row, the company has come in under analyst estimates. In the first quarter, it missed expectations by 19 cents with net income of 19 cents versus a mean estimate of net income of 38 cents per share.

Looking Forward: Over the last 30 days, analysts have not been optimistic about the company’s next-quarter performance. The average estimate for the third quarter is now 14 cents per share, down from 25 cents. In the past month, the average estimate for the fiscal year has fallen from $1.30 per share to 77 cents.

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

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