Why SpartanNash Stock Is Falling After Q1 Earnings

Anusuya Lahiri
1 min read
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In this article:

  • SpartanNash Co (NASDAQ: SPTN) reported first-quarter FY23 sales growth of 5.2% year-on-year to $2.91 billion, missing the consensus of $2.95 billion.

  • The company attributed the increase to sales growth in both the Wholesale and Retail segments, thanks to inflation trends.

  • Retail comparable sales increased 5.4% Y/Y.

  • Gross margin contracted 90 basis points to 15.4% due to lower inflation-related price change benefits in the Wholesale segment and reduced Retail pharmacy margins.

  • The company held $17 million in cash and equivalents and used $41.6 million in free cash flow.

  • Adjusted EPS of $0.64 beat the analyst consensus of $0.63.

  • Outlook: SpartanNash reiterated its FY23 sales outlook to $9.90 billion - $10.20 billion versus the consensus of $10.04 billion.

  • The company expects FY23 adjusted EPS of $2.20 - $2.35, against the consensus of $2.21.

  • In addition, SPTN reaffirmed its 2025 long-term financial targets, with Adjusted EBITDA of more than $300 million.

  • Price Action: SPTN shares traded higher by 8.95% at $20.85 on the last check Thursday.

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This article Why SpartanNash Stock Is Falling After Q1 Earnings originally appeared on Benzinga.com

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