The Fresh Market Jumps On Strong Guidance
The Fresh Market (NASDAQ: TFM) is up more than five percent in after hours trading after the company announced its fourth quarter results and FY2014 guidance.
The firm reported a Q4 EPS of $0.39 versus the Street estimate of $0.44.
Revenue arrived at $425.8 million versus the Street estimate of $433.31 million. Sales were up 15 percent year-over-year.
"Our core business continues to perform well," Craig Carlock, President and Chief Executive Officer, said in a company release. "Despite meaningful headwinds from a more cautious consumer, condensed holiday calendar and harsh winter weather, we achieved a comparable store sales increase of 3.1% in the fourth quarter.
"Following an in-depth analysis of our stores and the markets in which we operate, we made the strategic decision to close four stores. In addition, we are refining our real estate plan to focus on increasing penetration in existing markets while slowing the pace of our expansion in new markets. We believe these actions will allow us to allocate capital and resources to opportunities that are more in line with our historical returns.”
The Fresh Market's Q1 expectations ($0.41-0.44 vs $0.50 estimate) might prove to be a disappointment to some. But the FY2014 EPS estimate between $1.56 and $1.66 is giving Wall Street something to look forward to, especially when analysts expected no more than $1.43.
Disclosure: At the time of this writing, Louis Bedigian had no position in the equities mentioned in this report.
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