Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



SUPERVALU Popped: What You Need to Know

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of discount supermarket-eer SUPERVALU (NYSE: SVU  ) popped 10% higher today post-earnings.

So what: SUPERVALU "beat earnings" by $0.02 this morning, earning $0.35 per share, or about 13% better than last year. Surprisingly, it managed this despite a 4% decline in sales, and an effort to push its "everyday pricing" down to the levels of larger rivals Kroger (NYSE: KR  ) and Safeway (NYSE: SWY  ) -- which you might think would pinch profit margins, but apparently didn't.

Now what: Earning more than expected last quarter, you might also expect SUPERVALU to raise its estimate of what it will earn over the course of the full year -- by the amount of the $0.02 beat, at least. It didn't. Rather, SUPERVALU held full-year guidance steady at $1.20 to $1.40.

Investors aren't punishing SUPERVALU for that. Why not? My guess: Because up on Wall Street, analysts are still only expecting SUPERVALU to earn $1.23 per share this year. That's way below the midpoint of SUPERVALU's guidance, and seems to keep the door open to additional "earnings beats" as the year progresses. Fingers crossed.

Can SUPERVALU repeat the feat (or even three-peat?) Add it to your Watchlist and find out.

Fool contributor Rich Smith does not own (or short) shares of any company named above. The Motley Fool has a disclosure policy.

The Motley Fool owns shares of SUPERVALU. Also, Motley Fool newsletter services have recommended buying calls in SUPERVALU. Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

Read/Post Comments (0) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1525063, ~/Articles/ArticleHandler.aspx, 5/3/2016 10:19:41 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Rich Smith

I like things that go "boom." Sonic or otherwise, that means I tend to gravitate towards defense and aerospace stocks. But to tell the truth, over the course of a dozen years writing for The Motley Fool, I have covered -- and continue to cover -- everything from retailers to consumer goods stocks, and from tech to banks to insurers as well. Follow me on Twitter or Facebook for the most important developments in defense & aerospace news, and other great stories besides.

Today's Market

updated 1 hour ago Sponsored by:
DOW 17,750.91 -140.25 -0.78%
S&P 500 2,063.37 -18.06 -0.87%
NASD 4,763.22 -54.37 -1.13%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

5/3/2016 4:02 PM
SVU $4.63 Down -0.39 -7.77%
Supervalu CAPS Rating: **
KR $35.20 Down -0.23 -0.65%
The Kroger Co. CAPS Rating: ****
SWY $0.00 Down +0.00 +0.00%
Safeway, Inc. CAPS Rating: **