Q3 Preview: Analysts Bullish on SuperValu (SVU) into Results; Co. Beat the Last Three Quarters
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Price: $32.49 --0%
Rating Summary:
1 Buy, 15 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
1 Buy, 15 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Shares of SuperValu Inc. (NYSE: SVU) underperformed the broader stock market Tuesday ahead of the company's third-quarter results Wednesday ahead of the opening bell. While the S&P 500 closed up nearly 0.9 percent, SuperValu shares were unch at $8.39.
The Wall Street quarterly consensus for SuperValu is $0.24 per share in earnings on $8.42 billion in sales. During the third quarter of last year, the company reported earnings of $0.24 per share on $8.67 billion in total sales.
For the full year 2012, analysts on the Street are currently estimating $1.25 per share in earnings on $36.5 billion in total sales.
The third quarter conference call is scheduled for 10am ET.
According to data from Bloomberg, shares of SuperValu Inc. have three Buy ratings, nine Hold ratings, and four Sell ratings. The average price target on shares of SVU is $9 with a range from $6.50 to $11.
Cantor Fitzgerald is bullish going into the quarter with a Buy rating and $10 price target. The firm believes the quarter’s results will indicate continued improvements in average ticket and customer traffic trends. The firm forecasts earnings of $0.27 per share for the quarter.
An analyst at Cantor Fitzgerald said, “we think that gross margin is likely to represent the biggest opportunity for SVU in the upcoming results. We estimate that virtually all of the 85 basis points of gross margin decline reported by SVU in 3Q:11 can be attributed to ineffective promotions and price investments that failed to resonate with consumers. Comparisons in 3Q:12 represent a very rare opportunity in SVU’s recent history for actual gross margin improvement.”
Analysts at Deutsche Bank are contributing to the bullish sediment with a Buy rating and $10 price target on shares. The firm cites transformation initiatives which are showing incremental progress, an attractive valuation and investor sentiment which is extremely weak.
For the quarter, Deutsche Bank anticipates management will report non-fuel ID’s to be down 2.0 percent as inflation provides a little boost. The firm estimates earnings will reach $0.25 per share for the quarter.
The Wall Street quarterly consensus for SuperValu is $0.24 per share in earnings on $8.42 billion in sales. During the third quarter of last year, the company reported earnings of $0.24 per share on $8.67 billion in total sales.
For the full year 2012, analysts on the Street are currently estimating $1.25 per share in earnings on $36.5 billion in total sales.
The third quarter conference call is scheduled for 10am ET.
According to data from Bloomberg, shares of SuperValu Inc. have three Buy ratings, nine Hold ratings, and four Sell ratings. The average price target on shares of SVU is $9 with a range from $6.50 to $11.
Cantor Fitzgerald is bullish going into the quarter with a Buy rating and $10 price target. The firm believes the quarter’s results will indicate continued improvements in average ticket and customer traffic trends. The firm forecasts earnings of $0.27 per share for the quarter.
An analyst at Cantor Fitzgerald said, “we think that gross margin is likely to represent the biggest opportunity for SVU in the upcoming results. We estimate that virtually all of the 85 basis points of gross margin decline reported by SVU in 3Q:11 can be attributed to ineffective promotions and price investments that failed to resonate with consumers. Comparisons in 3Q:12 represent a very rare opportunity in SVU’s recent history for actual gross margin improvement.”
Analysts at Deutsche Bank are contributing to the bullish sediment with a Buy rating and $10 price target on shares. The firm cites transformation initiatives which are showing incremental progress, an attractive valuation and investor sentiment which is extremely weak.
For the quarter, Deutsche Bank anticipates management will report non-fuel ID’s to be down 2.0 percent as inflation provides a little boost. The firm estimates earnings will reach $0.25 per share for the quarter.
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