SuperValu Down 45% After Q1 Earnings Announcment, Dividend Supension
SuperValu (NYSE: SVU) is trading significantly lower on the session following its earnings announcement yesterday. The company reported an EPS of $0.19 vs $0.38 and revenues of $10.6 billion vs $10.8 billion estimates. SuperValu also said it is withdrawing all previous guidance and suspends its dividend.
Craig Herkert, chief executive officer and president. “While our shift to a fair price plus promotion strategy is right for our business, it is essential that we move even more aggressively to lower prices, and anticipate and respond to competitor actions. We expect our business transformation to meet our customers' demands for great quality at lower prices. We intend to do this while remaining profitable, continuing to pay down debt and investing the capital to maintain and enhance our stores and related assets. Accordingly, we will be pursuing deeper and more structural cost savings initiatives. Also, we are adopting more flexible financing facilities, reducing our near-term capital expenditures and suspending our dividend.”
SuperValu is currently trading at $2.91, a loss of $2.38 or 44.99%.
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.