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SpartanNash shares down 4% as earnings guidance fails to impress

EditorRachael Rajan
Published 11/07/2024, 08:43 AM
SPTN
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GRAND RAPIDS, Mich. - SpartanNash Co. (NASDAQ:SPTN) reported third quarter results that narrowly missed earnings estimates and provided disappointing EPS guidance, sending shares down over 4% in after-hours trading.

The food solutions company posted adjusted earnings per share of $0.48, falling short of analyst expectations of $0.49. Revenue came in slightly ahead at $2.25 billion compared to estimates of $2.24 billion.

SpartanNash's outlook for the full fiscal year 2024 disappointed investors. The company now expects earnings per share between $1.85 and $1.95, below the consensus estimate of $2.02. Revenue guidance of $9.5 billion to $9.7 billion was above analyst projections of $9.49 billion.

"Our team made significant progress on our strategic plans this past quarter, while sustaining profitability in a complex environment," said SpartanNash President and CEO Tony Sarsam.

The company's Retail segment saw sales increase 1.9% to $674.6 million, boosted by acquisitions, while comparable store sales declined 0.7%. Wholesale segment sales decreased 1.6% to $1.58 billion due to lower volumes.

SpartanNash maintained its quarterly dividend of $0.215 per share. The stock was down 4.47% in after-hours trading following the earnings release and weaker-than-expected guidance.

Looking ahead to fiscal 2025, the company expects low-single-digit topline growth and mid-single-digit adjusted EBITDA growth compared to fiscal 2024. SpartanNash plans to provide its full fiscal 2025 outlook when it reports fourth quarter results in February.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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