Top line could continue to contract in 3Q17
As discussed, Supervalu’s (SVU) top line and bottom line have contracted over the past several quarters. The company reported a net loss of $11 million from continuing operations in 3Q17. Both the retail and the wholesale divisions reported a fall in operating profits, which drove the net loss.
After adjusting for certain one-time charges, third quarter net earnings (from continuing operations) stood at $14 million, or $0.05 per diluted share. For the fourth quarter, Wall Street is predicting a net profit of $25 million or $0.09 per share.
Comparing SVU’s profitability to peers
A look at the recent performances of supermarket peers
Most of Supervalu’s grocery sector peers have seen muted performances in their recent quarters. Kroger reported a 7% drop in EPS in its fourth quarter results in early March.
ETF investors seeking to add exposure to SVU can consider the iShares Morningstar Small-Cap Value ETF (JKL), which invests 0.2% of its portfolio in the company.
Read the next section to know about the company’s stock market performance, current valuations, and Wall Street’s view.