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What: Shares of Milwaukee-based grocer Roundy's
So what: You know what investors hate to see during earnings season? Their company missing earnings estimates. You know what they hate even more? A disappointing forecast for the quarters ahead. In its second-quarter earnings release, Roundy's did both.
For the second quarter, the operator of Pick 'n Save and Copps reported earnings per share down 28% from last year, to $0.42. Total net income was up from last year, but the company's share count increased drastically. Wall Street analysts were expecting $0.43 in EPS. Revenue climbed 1.7%, but the $997 million tally was short of the $1 billion that analysts had forecasted.
Now what: What was probably even more painful for investors today was that Roundy's also walked back its guidance for the year. The company now sees revenue growing just 1% to 2% for the year, as compared with its previous forecast of 2.5% to 3.5% growth. On the bottom line, management expects between $1.10 and $1.24 in per-share profit, down from the previous range of $1.30 to $1.42. The consensus from Wall Street had been $1.34 for the year.
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Fool contributor Matt Koppenheffer has no 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 Facebook. The Fool's disclosure policy prefers dividends over a sharp stick in the eye.