Safeway Shares Surge on Q4 Results (SWY)
2/21/2013 3:20:02 PM
Shares of Safeway Inc. (NYSE: SWY) have surged in trading today after the company reported better than expected fourth-quarter profit and sales.
Steve Burd, Chairman and CEO of Safeway, said that he is pleased with the company’s results for the quarter. Burd said that while the calendar shift of New Year’s Eve and the shift to generic drugs had a significant drag on reported ID sales, the company’s just for U™ and fuel loyalty programs are driving market share gains and profits.
For the fourth quarter ended December 29, 2012, Safeway reported net earnings from continuing operations of $1.06 per share. Excluding one-time items, the company’s earnings for the quarter were $0.94 per share, well above the consensus forecast of $0.76 per share.
Sales and other revenue for the quarter rose 1.2% to $13.8 billion, beating Street estimates of $13.7 billion. The year-over-year increase in revenue was mainly due to higher gift and prepaid card sales and a 0.8% increase in identical-store sales, excluding fuel, partially offset by the disposition of the Genuardi’s stores.
For the full fiscal year ended December 29, 2012, the company reported net income of $596.5 million, or $2.40 per share, compared to $516.7 million, or $1.49 per share reported in the previous year. Sales for the fiscal year 2012 rose 1.3% to $44.2 billion.
SWY shares rose to a 52-week high of $23.96 earlier today. At last check, the stock was trading 12.97% higher at $22.74 on above average volume of 20.03 million.
About Safeway Inc.
Safeway Inc. is a Pleasanton, California-based food and drug retailer in North America.