SuperValu Beats Wall Street’s Expectations In Q4
Despite a weaker than previous fourth quarter, shares of SuperValu rose on Tuesday as the company announced earnings in the fourth quarter that came in higher than expected.
The Eden Prairie-based grocer reported profits for the quarter ending February 27 at $590 million or 23 cents per share after adjustments for debt refinancing, store closures and costs related to a potential Save-A-Lot spinoff. Total sales were $3.95 billion.
Still, Wall Street rallied behind the company, driving shares up 3 percent by midday to $5.32. Investors expected earnings per share of about 19 cents, according to The Street.
The results for the quarter fell short of the same period last year when SuperValu made $663 million on sales of $4.39 billion. That’s a 10 percent drop, though can in part be attributed to that quarter lasting 13 weeks rather than 12.
“Although fourth quarter sales were softer than we had forecast, I am optimistic about our future prospects and pleased at our ability to manage adjusted EBITDA to finish in-line with our expectations,” new CEO Mark Gross said in a statement. “We have a lot of positives to build on as we move forward.”
SuperValu reported fiscal 2016 numbers in the same announcement. The company reported $2.58 billion profit on sales of $17.53 billion. Profits for 2016 were nearly identical to fiscal 2015’s numbers (with same caveat that fiscal 2015 was a week longer).