Supervalu (NYSE:SVU) beat the Street and unveiled surprisingly solid guidance for the new fiscal year on Tuesday, sending the grocery store operator’s beaten-down stock soaring about 10%.
The parent of Save-A-Lot and Albertson’s said it lost $424 million, or $2.00 a share, last quarter, compared with a profit of $95 million, or 44 cents a share, a year earlier. Excluding one-time items, it earned 38 cents a share, topping forecasts from analysts for 35 cents.
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Supervalu said its sales slipped 5% to $8.23 billion, trailing the Street’s view of $8.31 billion.
Shareholders breathed a sigh of relief as the company projected full-year EPS of $1.27 to $1.42. Even the conservative end of that range would top estimate for just $1.19.
Eden Prairie, Minn.-based Supervalu also said it expects sales of $35 billion to $35.5 billion, which is in line with the Street’s view of $35.28 billion. Excluding fuel, same-store sales are expected to improve to a decline of 1% to 2%.
“Our disciplined approach to pre-funding price investments is allowing us to invest across markets, categories and items,” CEO Craig Herkert said in a statement.
Shares of Supervalu were recently up 9.77% to $5.81, easing the 2012 tumble of 34%.