Reuters: Hot Stocks: UPDATE 2-Supervalu profit, outlook top views; shares jump

Reuters: Hot Stocks Reuters.com is your source for breaking news, business, financial and investing news, including personal finance and stocks. Reuters is the leading global provider of news, financial information and technology solutions to the world's media, financial institutions, businesses and individuals. // via fulltextrssfeed.com

UPDATE 2-Supervalu profit, outlook top views; shares jump Apr 10th 2012, 13:12 Tue Apr 10, 2012 9:12am EDT * Q4 EPS 38 cents vs Street view 35 cents * Sees 2013 EPS $1.27-$1.42 vs Street view $1.19 * Shares up almost 16 percent By Lisa Baertlein April 10 (Reuters) - Supervalu Inc, the third-largest U.S. supermarket operator, reported better-than-expected earnings and issued a full-year profit forecast above Wall Street's view, sending its shares up almost 16 percent in premarket trading. Expectations were very low ahead of the quarterly report from Supervalu, which has been losing market share to Wal-Mart Stores Inc, Kroger Co and others and grappling with a large debt load. The jump in Supervalu shares appeared to be a classic short squeeze as those who bet against the stock scramble to cover their positions. Short-sellers have piled into Supervalu, making it the third most shorted stock on the S&P 500 after GameStop Corp and Sears Holdings Corp. Almost 43 percent of Supervalu's shares outstanding are being held short, according to Data Explorers. The Minneapolis-based owner of grocery chains such as Jewel-Osco, Albertsons and Save-A-Lot reported a net loss of $424 million, or $2 per share, for the fiscal fourth quarter ended Feb. 25, including asset impairment charges and costs related to previously announced layoffs. That compares with a year-earlier profit of $95 million, or 44 cents per share. Excluding one-time items, Supervalu earned 38 cents per share, topping analyst' average forecast of 35 cents, according to Thomson Reuters I/B/E/S. Net sales fell 5 percent to $8.23 billion, below analysts' average forecast of $8.31 billion. Identical-store sales excluding fuel fell 1.9 percent, a smaller drop than many analysts feared. Supervalu's identical-store sales, a key performance measure, show results from supermarkets operating for four full quarters, including store expansions and excluding fuel sales. Gross profit margin for the fourth quarter was 22.8 percent of net sales, down from 23.3 percent a year earlier due to price-lowering efforts, higher advertising expenses and other factors. Supervalu is working to get its everyday pricing as low as bigger players, including Kroger, Safeway Inc and Wal-Mart, amid fierce competition and higher food costs. At the same time, it has been paying off debt from its $12.4 billion acquisition of more than 1,100 Albertsons stores in 2006. That burden has hampered Supervalu's ability to compete more aggressively and stand out from rivals. The company forecast fiscal 2013 earnings per share of $1.27 to $1.42, above Wall Street's average estimate of $1.19. Supervalu shares jumped 15.6 percent to $6.15 in premarket trading. Link this Share this Digg this Email Reprints

You are receiving this email because you subscribed to this feed at blogtrottr.com. If you no longer wish to receive these emails, you can unsubscribe from this feed, or manage all your subscriptions