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How SpartanNash (SPTN) Looks Just Ahead of Q2 Earnings

Zacks Equity Research
·3 mins read

SpartanNash Company SPTN is likely to register an increase in the top line when it reports second-quarter 2020 results on Aug 12, after the closing bell. The Zacks Consensus Estimate for revenues is pegged at $2,313 million, indicating growth of 15.9% from the prior-year reported figure.

Further, the bottom line of this distributor and retailer of grocery products is also expected to improve year over year. We note that the Zacks Consensus Estimate for earnings for the quarter under review has been stable at 62 cents over the past 30 days. The figure suggests a sharp improvement from 34 cents reported in the year-ago period.

Notably, the company has a trailing four-quarter earnings surprise of 17.1%, on average. In the last reported quarter, this Michigan-based company surpassed the Zacks Consensus Estimate by a significant margin.

Factors to Note

SpartanNash’s top line is likely to have benefited from coronavirus-led stockpiling and shift to food-at-home trend as maintaining social distancing become the “new normal.” The company might have experienced a significant increase in demand across all three business segments namely, Food Distribution, Retail and Military Distribution.

Notably, the company’s focus on organic sales growth within the Food Distribution segment, exiting underperforming food processing businesses, improving supply chain and enhancing e-commerce capabilities are commendable.

Industry experts pointed that while higher sales and other strategic endeavors are likely to have a favorable impact on margins, investments to increase frontline associates’ pay and benefits, and expenses on additional safety and cleansing measures on account of the coronavirus pandemic may have weighed on the same.

SpartanNash Company Price, Consensus and EPS Surprise

SpartanNash Company Price, Consensus and EPS Surprise
SpartanNash Company Price, Consensus and EPS Surprise

SpartanNash Company price-consensus-eps-surprise-chart | SpartanNash Company Quote

What the Zacks Model Unveils

Our proven model does not conclusively predict a beat for SpartanNash this earnings season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

SpartanNash has a Zacks Rank #1 but an Earnings ESP of 0.00%.

Stocks With Favorable Combination

Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:

Dollar General DG has an Earnings ESP of +2.90% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Big Lots BIG has an Earnings ESP of +1.66% and a Zacks Rank #3.

Costco COST has an Earnings ESP of +1.81% and a Zacks Rank #3.

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Big Lots, Inc. (BIG) : Free Stock Analysis Report
 
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