SpartanNash (NASDAQ: SPTN) reported Q4 EPS of $0.41, in-line with the analyst estimate of $0.41. Revenue for the quarter came in at $1.92 billion versus the consensus estimate of $1.94 billion.

• Net Sales Increase 5.3% Driven by Growth in Food Distribution and Military Segments
• Reported Fourth Quarter EPS from Continuing Operations of $0.94 per Diluted Share;
• Adjusted Fourth Quarter EPS from Continuing Operations of $0.41 per Diluted Share

Outlook

Mr. Staples continued, “We ended 2017 with the Company positioned for growth despite the ever-evolving retail landscape. During the year, we expanded our food distribution customer base and private brand offerings, diversified our sales channels, continued optimizing certain aspects of our supply chain, and invested in both the Caito management team and our retail store base. While the retail environment remains challenging, we are focused on capitalizing on our growth opportunities and leveraging our differentiated business model to drive sales and profitability. We continue to take actions that we believe will enhance the convenience and value that we provide our customers and continue to see positive results from our investments. To enhance this momentum, we intend to invest approximately 50% of our tax reform savings in our associates and programs designed to improve our competitive position.”

For fiscal 2018, the Company anticipates year-over-year sales growth to continue in the food distribution segment driven primarily by incremental sales to high-growth customers as well as contributions from Caito’s Fresh Kitchen facility. New military commissary business in the Southwest, which will benefit sales comparisons for the first half of 2018, and contributions from the ongoing expansion of the DeCA private brand program should continue to drive sales growth in the military segment. The Company expects that its retail stores’ comparable sales will improve to slightly negative to flat by the end of the year as the stores benefit from the Company’s new positioning of its offerings. The sales outlook takes into consideration the impact of the new revenue recognition standard, which upon adoption in the first quarter of 2018 will reduce fiscal 2017 net sales by approximately $160 million as certain food distribution contracts that are currently reported on a gross basis will be reported on a net basis as the Company concluded that it does not control the goods or services prior to transfer to the customer. The Company anticipates adjusted earnings per share from continuing operations(5) of approximately $2.20 to $2.32, excluding merger/acquisition and integration expenses, restructuring charges and other adjusted items, compared to $2.10 in the prior year. The Company anticipates that reported earnings from continuing operations will be in the range of approximately $2.02 to $2.09 per diluted share, compared to a loss from continuing operations of $(1.41) per diluted share in the prior year. The adjusted and reported guidance reflects an effective tax rate of 23% to 24% for fiscal 2018 and estimates that approximately half of the tax savings associated with new federal tax legislation will directly benefit earnings.

GUIDANCE:

SpartanNash sees FY2018 EPS of $2.20-$2.32, versus the consensus of $2.35.

For earnings history and earnings-related data on SpartanNash (SPTN) click here.