Nash Finch beats Q3 profit estimates
Nash Finch Co. (Nasdaq: NAFC) shares are up after the food distributor recorded a better-than-expected third-quarter profit. For the three months ended Oct. 6, Nash Finch’s net earnings were $15.4 million, or $1.12 per share, above analyst expectations of $0.75 per share and compared with a loss of $4.6 million, or $0.34 per share, a year earlier.
"I remain quite pleased with the overall improvements our company has made thus far this year," CEO Alec Covington said in a statement. "Through our continued focus on inventory management practices, vendor relationships, and operational and overhead expense controls, we have seen significant improvement in our results. In addition, these actions are aiding our customers by providing additional promotional product allowances with deeper discounts resulting in improved overall product costs."
The company’s quarterly sales totaled $1.37 billion, on par with Wall Street projections of $1.39 billion and compared with $1.42 billion during the prior-year period. During the quarter, Nash Finch’s cost of sales decreased to $1.25 billion, from $1.3 billion a year earlier.
The Minneapolis, Minn.-based company said it closed retail stores and one of its large customers transferred to another supplier, causing the revenue decline.
In morning trading, NAFC shares are up 11.85%, or $3.97, at $37.48. Over the last 52 weeks, shares have ranged from $23.26 to $51.87.
