Supervalu beats by $0.10, misses on revs; sees FY18 EBITDA at low end of prior range (19.63)
Reports Q3 (Nov) earnings of $0.61 per share, $0.10 better than the Capital IQ Consensus of $0.51; revenues rose 31.2% year/year to $3.94 bln vs the $4 bln Capital IQ Consensus.
EPS included a discrete tax benefit that contributed approximately $0.30 to net earnings from continuing operations per diluted share.
Completed acquisition of Associated Grocers of Florida in the fourth quarter.
"We're pleased to have completed our acquisition of AG Florida early in the fourth quarter," said President and CEO Mark Gross. "The work done in the third quarter concluded with this deal which, combined with the acquisition of Unified Grocers earlier this fiscal year, demonstrates our commitment to the strategic growth of our Wholesale business. Furthermore, we're extremely pleased with the integration work at Unified and the progress made in that market."
Fiscal 2018 Outlook
Currently expects net earnings from continuing operations to be in the range of $(20) million to $2 million which includes a non-cash charge of $35 million to $45 million anticipated to be made in the fourth quarter to reduce the carrying value of Supervalu's net deferred tax asset in accordance with the newly enacted tax reform legislation.
Sees Adjusted EBITDA, including the contribution from Unified Grocers and Associated Grocers of Florida, is expected to be in the range of $475 million to $485 million (vs. prior guidance of $475-495 mln).