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Safeway’s Q3 Profit Beats, but Revenue Misses; Forecast Reaffirmed (SWY)
Supermarket chain operator Safeway Inc. ( SWY ) on Thursday posted mixed third quarter earnings results and stood by its previously-announced full-year outlook.
The Pleasanton, CA-based company reported third quarter net income of $157 million, or 66 cents per share, compared with $130.2 million, or 38 cents per share, in the year-ago period. Excluding special items, adjusted profit was 45 cents per share.
Revenue edged slightly lower from last year to $10.05 billion.
On average, Wall Street analysts expected a smaller profit of 42 cents per share, albeit on higher revenue of $10.24 billion.
Looking ahead, SWY maintained its full-year 2012 earnings outlook at $1.90 to $2.10 per share. Analysts are currently looking for $1.98 per share for the year.
Safeway shares fell 65 cents, or -4%, in premarket trading Thursday.
The Bottom Line
Shares of Safeway ( SWY ) have a 4.30% dividend yield, based on last night's closing stock price of $16.29. The stock has technical support in the $14-$15 price area. If the shares can firm up, we see overhead resistance around the $18-$19 price levels.
Safeway Inc. ( SWY ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.1 out of 5 stars.