Supermarket chain operator Safeway Inc.(
) on Thursday said its third quarter profit fell 4.7% from last
year, hurt by lower revenue, but results were still enough to beat
The Pleasanton, CA-based company reported third quarter net
income of $122.8 million, or 33 cents per share, compared with
$128.8 million, or 31 cents per share, in the year-ago period.
Revenue fell 1% from last year, to $9.4 billion.
On average, Wall Street analysts expected a smaller profit of 31
cents per share, albeit on higher revenue of $9.64 billion.
Looking ahead, the company said its full-year profit would
likely be at the low end of its previously-announced range of $1.50
to $1.70 per share.
Safeway shares fell 32 cents, or -1.5%, in premarket trading
The Bottom Line
We have avoided shares of SWY since our early June 2008 coverage
began, when the stock was trading at $31.04. The company has a
2.25% dividend yield, based on last night's closing stock price of
$21.32. The stock has technical support in the $18-$19 price area.
If the shares can firm up, we see overhead resistance around the
$23-$24 price levels. We would remain on the sidelines for now.
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.2 out of 5 stars.
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