UPDATE: Fresh Market Q4 Profit Beats Estimates

reported better-than-expected earnings for the fiscal fourth quarter. The Greensboro, North Carolina-based company posted quarterly net income of $20.2 million, or $0.42 per share, compared to $2.0 million, or $0.04 per share, in the year-ago period. Excluding non-recurring items, the company earned $0.55 per share. Its revenue climbed 12.8% to $480.5 million. However, analysts were expecting earnings of $0.51 per share on revenue of $482.91 million. Comparable store sales gained 3.0% to $412.3 million in the quarter. Gross profit for the quarter climbed 15.4% to $164.7 million, while gross margin rose 80 basis points to 34.3% from 33.5%. Adjusted EBITDA in the fourth quarter climbed 29.3% y/y to $60.8 million from $47.0 million. At the end of the fourth quarter, Fresh Market had $48.5 million of cash and no long-term debt. As of January 25, 2015, the company operated 169 stores in 27 states. Sean Crane, Interim Chief Executive Officer, said, "We are pleased with our fourth quarter results. During the quarter, we successfully took steps to grow customer transactions, expand gross margin and leverage our cost structure…Looking forward, we remain focused on our key growth strategies, including opening new stores in our core markets and continuing to increase shopper frequency." For the year, Fresh Market projects earnings of $1.77 per share to $1.85 per share. Fresh Market shares gained 2.14% to $40.48 in after-hours trading.