UPDATE: SUPERVALU Shares Rise On Earnings Beat
Shares of SUPERVALU Inc. (NYSE: SVU) surged 4.9% in pre-market trading after the company reported better-than-expected third-quarter results.
The Eden Prairie, Minnesota-based company posted quarterly net earnings from continuing operations of $12 million, or $0.04 per diluted share. Excluding certain items, net earnings from continuing operations rose to $49 million, or $0.18 per diluted share, up from $33 million, or $0.12 per diluted share, in the year-ago period.
Its sales rose to $4.20 billion from $4.01 billion. However, analysts were expecting earnings of $0.14 per share on revenue of $4.09 billion.
Independent Business net sales gained to $1.96 billion from $1.91 billion, while Save-A-Lot net sales climbed to $1.08 billion from $991 million. Retail Food net sales jumped to $1.12 billion from $1.06 billion.
Gross profit for the quarter came in at $593 million, or 14.1% of net sales, compared to $569 million, or 14.2% of net sales.
“We passed an important milestone this quarter delivering positive sales increases in all three of our business segments for the first time in many years,” said President and CEO Sam Duncan. “I'm very encouraged to see our Independent Business segment post higher sales compared to last year's third quarter, and I remain pleased with the continued progress we are making in our retail stores.”
Supervalu shares gained 4.90% to $9.64 in pre-market trading.
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