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Last Update: 11-Jan-12 09:58 ET
Supervalu Down 11% On This Morning's Earnings/Guidance Results
Supervalue (SVU $7.48 -0.914) is trading 11% lower, driven by its third quarter financial results, which were released earlier this morning.
Earlier, the company reported third quarter earnings of $0.24 per share, excluding non-recurring items, $0.01 worse than the Capital IQ Consensus Estimate of $0.25.
Revenues fell 4.0% year/year to $8.33 billion versus the $8.41 billion consensus. The change in net sales primarily reflects identical store sales of negative 2.9 percent and previously announced market exits.
Gross profit margin for Q3 was $1.8 bln, or 21.7 percent of net sales, compared to $1.9 billion or 21.5 percent of net sales last year. The increase in gross margin as a percent of net sales reflects the benefits of promotional effectiveness, which were partially offset by retail price investments and a higher LIFO charge.
For fiscal year 2012, the company reaffirmed EPS of $1.20 to $1.30 versus the $1.26 Capital IQ Consensus Estimate; lowers revenue guidance to approx. $36.1 billion from approx. $36.5 billion versus the $35.97 billion Capital IQ Consensus Estimate; lowers comps to -2.5 to -3.0% from -2.0- to -2.5%.
Earlier, the company reported third quarter earnings of $0.24 per share, excluding non-recurring items, $0.01 worse than the Capital IQ Consensus Estimate of $0.25.
Revenues fell 4.0% year/year to $8.33 billion versus the $8.41 billion consensus. The change in net sales primarily reflects identical store sales of negative 2.9 percent and previously announced market exits.
Gross profit margin for Q3 was $1.8 bln, or 21.7 percent of net sales, compared to $1.9 billion or 21.5 percent of net sales last year. The increase in gross margin as a percent of net sales reflects the benefits of promotional effectiveness, which were partially offset by retail price investments and a higher LIFO charge.
For fiscal year 2012, the company reaffirmed EPS of $1.20 to $1.30 versus the $1.26 Capital IQ Consensus Estimate; lowers revenue guidance to approx. $36.1 billion from approx. $36.5 billion versus the $35.97 billion Capital IQ Consensus Estimate; lowers comps to -2.5 to -3.0% from -2.0- to -2.5%.
