Supervalu Second Quarter Earnings Sneak Peek

Supervalu (NYSE:SVU) will unveil its latest earnings on Thursday, October 18, 2012. SUPERVALU operates as a grocery retailer in the United States.

Supervalu Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 13 cents per share, a decline of 53.6% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 21 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 13 cents during the last month. Analysts are projecting profit to rise by 47.2% versus last year to 66 cents.

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Past Earnings Performance: Last quarter, the company fell short of estimates by 3 cents, coming in at net income of 19 cents per share against a mean estimate of profit of 38 cents. The company topped expectations in the fourth quarter of the last fiscal year.

A Look Back: In the first quarter, profit fell 44.6% to $41 million (19 cents a share) from $74 million (35 cents a share) the year earlier, missing analyst expectations. Revenue fell 4.7% to $10.59 billion from $11.11 billion.

Stock Price Performance: Between August 16, 2012 and October 12, 2012, the stock price had fallen 56 cents (-23.1%), from $2.42 to $1.86. The stock price saw one of its best stretches over the last year between July 25, 2012 and August 1, 2012, when shares rose for six straight days, increasing 46.2% (+80 cents) over that span. It saw one of its worst periods between April 26, 2012 and May 9, 2012 when shares fell for 10 straight days, dropping 14.5% (-90 cents) over that span.

Wall St. Revenue Expectations: Analysts predict a decline of 4.7% in revenue from the year-earlier quarter to $8.03 billion.

Key Stats:

On the top line, the company is hoping to use this earnings announcement to snap a string of four-straight quarters of revenue decreases. Revenue fell 2.6% in the second quarter of the last fiscal year, 4% in third quarter of the last fiscal year and 5% in the fourth quarter of the last fiscal year and then fell again in the first quarter.

The company is riding some good income statement momentum into the upcoming earnings announcement. The company reported losses in the third quarter of the last fiscal year and the fourth quarter of the last fiscal year, but finished in the black with income of $41 million in the first.

Analyst Ratings: There are mostly holds on the stock with 11 of 13 analysts surveyed giving that rating.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 0.97 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, a ratio less than one could indicate a company may have difficulty meeting current obligations.

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

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