Why SpartanNash Stock Rose This Morning Before Giving Back Gains
Shares of SpartanNash (NASDAQ: SPTN) rose this morning, with gains of as much as 11% before closing roughly flat for the day, after the company reported first-quarter earnings. The grocery wholesaler and retailer easily beat expectations as grocery demand remains strong amid the COVID-19 pandemic.
Revenue in the first quarter increased 12% to $2.86 billion, ahead of the $2.62 billion in sales that analysts were modeling for. That resulted in adjusted earnings per share of $0.67, topping the $0.47 per share in adjusted profits that Wall Street was expecting. Retail comparable-store sales growth accelerated meaningfully to 16% due to the coronavirus pandemic. SpartanNash estimates that $0.38 of adjusted earnings per share was driven by increased consumer demand related to the crisis as people stocked up on food and other consumer staples.
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Source Fool.com
