News Column

Supervalu stock gains as 1Q beats estimates

July 24, 2014

By Tom Webb, Pioneer Press, St. Paul, Minn.

July 24--Supervalu's turnaround continues to gain traction, with the Eden Prairie-based grocer reporting more positives than negatives in its first-quarter earnings Thursday.

Net income was $43 million, or 17 cents a share, topping analysts' forecasts. At mid-morning, shares hit a two-year high of $8.99 before easing a bit. And same-store sales were positive in its Save-A-Lot stores as well as its supermarkets, including Cub Foods in the Twin Cities.

Profit decreased by 49 percent from the previous fiscal first quarter because of a series of one-time gains and tax benefits that year. Last year, the company earned $85 million, or 34 cents per share.

Wall Street took these one-time factors into account. The average estimate of analysts surveyed by Zacks Investment Research was for earnings of 17 cents per share, which Supervalu beat.

"Fiscal 2015 is off to a solid start across our business segments," CEO Sam Duncan said in a statement. "Our first quarter results reflect the investments we are making this year to position the company for future success and I am pleased with our operating performance."

Not all the numbers were positive. Net sales fell 0.1 percent from the previous year, to $5.23 billion. And its distribution business to other grocers reported a sales decline of 2.6 percent.

But same-store sales were mostly higher. Save-A-Lot stores reported a same-store sales gain of 5.6 percent, including a 7.2 percent lift in the corporate-owned stores. The company's traditional supermarkets reported a same-store sales gain of 0.6 percent.

In late morning trading, shares were up nearly 1 percent, or 7 cents a share, to $8.95.

Associated Press reports were used in this story. Tom Webb can be reached at 651-228-5428. Follow him at


(c)2014 Pioneer Press (St. Paul, Minn.)

Visit the Pioneer Press (St. Paul, Minn.) at

Distributed by MCT Information Services

For more stories on investments and markets, please see HispanicBusiness' Finance Channel

Source: Saint Paul Pioneer Press (MN)

Story Tools Facebook Linkedin Twitter RSS Feed Email Alerts & Newsletters