Spartan Stores Earnings: Here’s Why Investors are Ambivalent Now
Spartan Stores Inc. (NASDAQ:SPTN) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company.
Spartan Stores Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 7.14% to $0.3 in the quarter versus EPS of $0.28 in the year-earlier quarter.
Revenue: Rose 1.41% to $612.4 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Spartan Stores Inc. reported adjusted EPS income of $0.3 per share. By that measure, the company beat the mean analyst estimate of $0.27. It beat the average revenue estimate of $605.38 million.
Quoting Management: “We are pleased with our ability to generate improved first quarter financial results despite the negative effect of the Easter calendar shift and generally unfavorable weather conditions compared to the prior year,” stated Dennis Eidson, Spartan’s President and Chief Executive Officer. “Our adjusted earnings from continuing operations exceeded our guidance and we generated increased cash flow from operations for the quarter driven by an operating margin improvement in our retail segment. We benefited from the acquisition of a retail store late in the prior year third quarter, new customer gains, the growing traction of our Yes Rewards loyalty program and increased fuel sales, as well as our continued disciplined expense management. We continue to refine our promotion and loyalty programs and to introduce new private brand products to provide even more value to our retail and distribution customers in today’s economy.”
Key Stats (on next page)…