Safeway's 2Q Results: Postgame Scorecard

FOXBusiness

Safeway (NYSE:SWY) reported increased profit for the most recent quarter, boosted by strong revenue.

Earnings and Revenue The company experienced stronger-than-expected EPS and revenues. The company reported EPS of 50 cents a share versus the 49 cents a share estimate and revenues of $103.87 billion versus the $10.33 billion estimate. The estimates of 15 analysts ranged from profit of 42 cents to profit of 56 cents.

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Net income for the second quarter was $1.22 billion. According to the reported number, this is up 734.7% from last year's levels. Revenue climbed 918.7% from $10.2 billion in the same period last year.

Company Fundamental Trends The company's revenue has grown during at least each of the past four quarters on a year-over-year basis.

History Against Expectations The company topped estimates last quarter after falling in line with expectations in the first quarter. It reported net income of 30 cents per share.

Official Comment: "Identical-store sales, excluding fuel, increased 0.8% in the second quarter of 2012," said Steve Burd, Chairman and CEO. "We are encouraged to see that our volume trends are improving as inflation has eased, and we are pleased to see market share gains in the grocery channel and a slight gain in market share in all food-related channels," added Burd. "We expect continued momentum as participation grows in our just for U loyalty program that is now available in all U.S. divisions and as we enhance our fuel rewards programs and expand our health and wellness initiatives."

Estimates provided by Zacks Investment Research and company fundamentals from Xignite Financials.