Barclays Maintains an 'Equalweight' on SAFEWAY (SWY); 3Q11 Earnings Preview
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Price: $35.10 --0%
Rating Summary:
4 Buy, 15 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 6 | New: 26
Rating Summary:
4 Buy, 15 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 6 | New: 26
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Barclays maintains an 'Equalweight' on SAFEWAY (NYSE: SWY) price target of $21.00.
Barclays analyst says, "We are maintaining our 3Q11 EPS estimate of $0.31 vs. conensus of $0.35. Our estimate reflects improving sales but signifincant gross margin pressure, partially offset by improving SG&A as a percent of sales, primarily due to strong fuel sales. Our total sales estimate for 3Q is $9.9 billion, with id sales up 0.8% (ex-fuel). We also expect the gross margin to decline by 125 bp. Our forecast assumes that SG&A dollars to increase by 1.8%, driven by higher labor and incentive comp."
"On the call, we hope to hear commentary on current sales trends, including traffic and tonnage, the competitive environment, changes in consumer behavior, and factors impacting the gross margin. We would like SWY to discuss its pricing strategy for inflationary items that exhibit significant demand elasticity."
For more ratings news on SAFEWAY click here and for the rating history of SAFEWAY click here.
Shares of SAFEWAY closed at $17.94 yesterday.
Barclays analyst says, "We are maintaining our 3Q11 EPS estimate of $0.31 vs. conensus of $0.35. Our estimate reflects improving sales but signifincant gross margin pressure, partially offset by improving SG&A as a percent of sales, primarily due to strong fuel sales. Our total sales estimate for 3Q is $9.9 billion, with id sales up 0.8% (ex-fuel). We also expect the gross margin to decline by 125 bp. Our forecast assumes that SG&A dollars to increase by 1.8%, driven by higher labor and incentive comp."
"On the call, we hope to hear commentary on current sales trends, including traffic and tonnage, the competitive environment, changes in consumer behavior, and factors impacting the gross margin. We would like SWY to discuss its pricing strategy for inflationary items that exhibit significant demand elasticity."
For more ratings news on SAFEWAY click here and for the rating history of SAFEWAY click here.
Shares of SAFEWAY closed at $17.94 yesterday.
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