UPDATE: Roundy's Beats Q4 Expectations, Shares Surge

Shares of

jumped more than 13% in after-hours trading after the company reported stronger-than-expected results for the fourth quarter. The Milwaukee, Wisconsin-based company reported a quarterly net income from continuing operations of $7.5 million, or $0.16 per share, up from $3.2 million, or $0.07 per share, in the year-ago period. Excluding non-recurring items, the company earned $0.07 per share. Its revenue climbed 26.1% to $1.08 billion. However, analysts were expecting earnings of $0.03 per share on revenue of $1.06 billion. Gross profit gained 21.0% to $275.6 million from $227.8 million in the latest quarter, while gross profit as a percentage of net sales narrowed to 25.6% from 26.7% in the year-ago period. Operating and administrative expenses climbed to $265.0 million from $208.7 million. Adjusted EBITDA from continuing operations jumped to $37.0 million for the fourth quarter, versus $35.0 million in the year-ago quarter. Robert A. Mariano, chairman, president and chief executive officer of Roundy's said, "The fourth quarter was also our second consecutive quarter of improved same-store sales. Overall, 2014 was a transition year for the Company with our investments in Illinois growth and our transition out of the Twin Cities market. Each successive quarter was another building block in creating a solid foundation for the future." Mr. Mariano added, "While the current operating environment still presents challenges near-term, we remain confident in our ability to implement our strategic operational initiatives designed to optimize our long-term performance." For the full year, the company projects a loss of $0.18 to $0.07 per share, on revenue of $4 billion to $4.08 billion. Roundy's shares climbed 13.93% to $4.58 in the after-hours trading session.