Did Smart & Final Stores Beat Earnings Estimates in Fiscal 4Q15?

Los Angeles-based Smart & Final Stores (SFS) reported its results for fiscal 4Q15 (which ended January 3, 2016) and fiscal 2015 on March 9, 2016. The company came in ahead of consensus Wall Street estimates on both revenue and earnings during the quarter. It topped revenue estimates by $12 million, reporting a top line of $997.7 billion in fiscal 4Q15. Earnings per share were 3 cents better than the average estimate of 16 cents per share.

• Net sales increased 19% YoY (year-over-year) to $997 million.
• Comparable store sales grew 3.5% during the quarter.
• Net income stood at $10 million, or $0.13 per diluted share.
• Adjusted net income increased 19.5% to $14.7 million, or $0.19 per diluted share.

Headquartered in Los Angeles, Smart & Final Stores (SFS) is a value-oriented food and everyday staples retailer serving household and business customers. The company operates its grocery and foodservice stores under the “Smart & Final,” “Smart & Final Extra!,” and “Cash & Carry Smart Foodservice” banners.

As of January 2016, the company operate around 276 stores in the Western United States and 16 stores in Northwestern Mexico (through a joint venture). SFS offers a variety of perishable products and grocery items and competes with conventional grocers such as Kroger (KR), warehouse clubs such as Costco (COST), mass merchandisers such as Walmart (WMT), and foodservice delivery companies such as Sysco (SYY).

SFS constitutes 0.26% of the SPDR S&P Retail ETF (XRT) and 0.05% of the iShares Russell 2000 Value ETF (IWN).

This series provides an earnings overview of Smart & Final Stores’ fiscal 4Q15 and fiscal 2015 results. We’ll analyze the performance of each of the company’s banners, discuss the company’s stock performance, and evaluate the stock’s valuation vis-à-vis those of its peers. In the next part of this series, we’ll start with the company’s fiscal 4Q15 financial results.