A Look at SVU’s Financial Performance ahead of Fiscal 4Q16 Results




Supervalu (SVU) is slated to report its fiscal 4Q16 results and fiscal 2016 results on April 26, 2016. In fiscal 3Q16, Supervalu reported earnings that were in line with the company’s own guidance as well as Wall Street estimates of $0.16 per share. However, the company missed on revenue by $50 million and reported total sales of ~$4.1 billion.

Wall Street has predicted earnings of $0.19 per share for Supervalu, or -22.1% year-over-year on total sales of $4 billion, -8.1% YoY, in fiscal 4Q16.

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About Supervalu

Headquartered in Minnesota, Supervalu (SVU) is one of the largest grocery wholesalers and retailers in the US. The company manages its business primarily through three business segments:

Independent Business segment: Through this segment, the company offers wholesale distribution and logistics service solutions to 1,871 independently owned retail stores.

Save-A-Lot segment: Revenue under this segment is derived from the sale of groceries at retail locations operated by the company and from stores licensed by the company to which it provides wholesale distribution. The company has decided to spin off this segment into a separate entity. The separation process is likely to be completed in the first half of fiscal 2017.

Retail Food segment: This segment derives revenues from the sale of groceries and other products at 200 retail stores operated by the company.

With a market capitalization of $1.5 billion, Supervalu is included in the portfolio holdings of the iShares Morningstar Small-Cap Value ETF (JKL) with a weight of ~0.32%.

Series overview

In the series, we will look at Supervalu’s (SVU) financial performance in its last reported quarter, fiscal 3Q16, discuss the company’s expected performance in fiscal 4Q16, and get an overview of fiscal 2016.

We will also discuss the company’s stock market performance and evaluate its valuation with respect to peers like Kroger (KR), Sprouts Farmers Market (SFM), and Whole Foods Market (WFM). Let’s start with the past quarter’s results in the next section.


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