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 grocer SuperValu
So what: SuperValu is one of those companies with an oddball fiscal year, so though it reported earnings during first-quarter earnings season, it was reporting for its fiscal year that ended in February. But really, who cares about any of that when the results look like this? Analysts were looking for earnings per share $0.34 from the company in the fourth quarter and SuperValu crushed that with $0.44 in per-share profit. Revenue of $8.7 billion was basically in line.
Now what: Maybe even more encouraging was the fact that the company's projections for fiscal 2012 included earnings per share of $1.30 at the midpoint of the guidance range. Wall Street estimates were calling for just $1.17. Currently trading at roughly eight times projected 2012 profit, SuperValu has the potential to be a super value stock. It's not cheap without reason though. If next year's earnings hit the midpoint, they'll be down from the just-completed fiscal year, while revenue is projected to be flat. The company also has a formidable amount of debt on its balance sheet that it's been working to pay down. So it's certainly a happy day for SuperValu shareholders today, but the company's work is far from done.
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Motley Fool Options has recommended buying calls on SUPERVALU. The Fool owns shares of SUPERVALU. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.
Fool contributor Matt Koppenheffer does not have a financial interest in any of the companies mentioned. You can check out what Matt is keeping an eye on by visiting his CAPS portfolio, or you can follow Matt on Twitter @KoppTheFool or on his RSS feed. The Fool's disclosure policy prefers dividends over a sharp stick in the eye.