(SVU) - SUPERVALU INC - company has a price-to-book ratio of 1.9, compared to 4.8 for the market

SUPERVALU INC. (SVU), a Zacks #1 Rank stock, exceeded analysts’ earnings expectations in five out of the past six quarters by an average margin of 12.6%. The company recently raised its fiscal 2007 earnings per share guidance. SVU has a price-to-book ratio of 1.9, compared to 4.8 for the market. The company is currently yielding 1.9%. Full Analysis SUPERVALU INC. operates as a grocery retailer in the United States, with approximately 2,500 retail grocery locations. Through its nationwide supply chain network, SVU provides distribution and related logistics support services to more than 5,000 grocery retail endpoints across the country. SVU topped the Street’s earnings estimate in five out of the past six quarters by an average margin of 12.6%. In four out of the five quarters, the company surprised by a double-digit percentage. On Oct 10, SVU posted second-quarter fiscal 2007 earnings per share of 61 cents. With analysts expecting 52 cents, the company surprised to the upside by 17.3%. Compared to earnings of 54 cents in the prior-year period, the result marked a 13.0% year-over-year improvement. Revenues more than doubled to $10.67 billion, up from $4.56 billion a year ago. SVU upped its fiscal 2007 earnings per share guidance in mid December. The company now projects earnings between $2.32 and $2.43 per share, compared to its previous outlook which called for profits between $2.18 and $2.41 per share. On Oct 12, the Board of Directors declared a regular quarterly cash dividend of 16.5 cents per share. SVU has a current dividend yield of 1.9%. Analysts have been growing increasingly optimistic about the company’s future earnings potential. Consensus estimates for this year currently sit at $2.35. This represents a six-cent jump over the past 30 days. Profit forecasts for next year have also risen by six cents to $2.66 over the same period of time. Earnings per share are projected to grow 10% over the next 3-5 years. The company announced its “Premium Fresh & Healthy” initiative in mid November, a $1 billion customized remodeling and new store program designed to enhance its customers' shopping experience. Executive Vice President, Merchandising & Marketing Duncan Mac Naughton stated, “Our extensive research tells us that grocery retailing today should provide consumers with products that allow them to 'turn the dining room lights back on.' This program seeks to deliver compelling, timely and localized offers at the right price through combined scale, customer insight and market knowledge.” SVU is currently trading at a valuation of 15.2x both trailing 12-month earnings and current fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 17.4x trailing 12-month earnings and at 16.7x its current fiscal-year estimated earnings. The company has a price-to-book ratio of 1.9, compared to 4.8 for the market. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home