Spartan Stores beats expectations, tops 52-week high
Spartan Stores (Nasdaq: SPTN) Wednesday afternoon reported consolidated net sales and earnings for the fourth quarter ended March 31 that eclipsed expectations, driving the Grand Rapids, Michigan-based supermarket company to new 52-week highs in after-hours trading.
Net earnings for the quarter increased 36.4% to $7.2 million, or $0.34 per diluted share, from $5.3 million, or $0.25 per diluted share, in the same period last year, and better than expectations from two analysts for $0.28.
Consolidated net sales for the 13-week fourth quarter were up 23.6% percent to $559.5 million, from $452.8 million in last year's 12-week fourth quarter, with the extra week in fiscal 2007's fourth quarter adding $42.3 million to sales. One analyst had been looking for revenues of $553.3 million.
Fourth-quarter earnings from continuing operations increased 30.6% from the same period last year, and operating earnings improved for the fifth consecutive quarter, increasing 34.2% to $14.0 million, from $10.4 million a year ago.
"We continue to be pleased with our steady business progress and consistently improving financial results," said Craig Sturken, Spartan's Chairman and CEO, in a statement. He said net sales have improved by at least 12% for the past four quarters and operating earnings have grown by double digits in nine of the past 11 quarters.
In after-hours trading, shares were up 2.69% at $28.30, setting a new 52-week high. The previous 52-week high was $28.10, and the low is $12.17.
The company said it expects comparable store and distribution sales to increase in the low single digits in fiscal 2008, and overall profitability to increase as margins stabilize and fixed costs become better leveraged.
Spartan Stores, Inc. is the nation's tenth largest grocery distributor, with warehouse facilities in Grand Rapids and Plymouth, Mich. The company distributes private-label and national brand products to nearly 400 independent grocery stores in Michigan, Indiana and Ohio, and own and operates 68 retail supermarkets.
