Nash Finch Co.

Nash Finch Co. (NAFC - Analyst Report) analysts continue to raise estimates following the company's latest earnings announcement. In addition, the company just announced a deal to buy a southern food distributor.

Company Description

Nash Finch Company is one of the largest food distribution companies in the United States. Its business consists of three primary operating segments. The wholesale distribution segment supplies food and non-food items to independently owned retail grocery stores, corporately owned retail grocery stores and institutional customers.

Its retail segment is made up of corporately owned retail grocery stores with a variety of store formats. The military distribution segment, which supplies food and related products to military commissaries.

Estimates Climb After Quarterly Report

Total sales of $1.44 billion were announced during the company's third-quarter earnings announcement on Nov 6. Sales rose 5.1% on a year-over-year basis, up from $1.38 billion.

Earnings per share came in lower than the third quarter of 2007 due to non-cash LIFO charges, but those number were also inflated last year due to one-time tax savings. Adjusted earnings per share came in at $1.00, 12.4% higher than the consensus estimate of 89 cents.

Since the earnings announcement, full-year estimates have climbed from $3.17 to $3.28 for the current year. Estimates for 2009 are now averaging $3.84, up from $.3.68 over the same period of time.

Expanding Distribution

On Dec 18 the company announced the acquisition of GSC Enterprises, Inc, a Texas based food distribution company. The deal will be an $80 million all-cash transaction.

Alec Covington, president and CEO of Nash Finch said "This acquisition extends our commitment to serving the U.S. military and will bolster our ability to serve our existing customers and attract new customers in the southern and Midwest regions of the United States by utilizing GSC's successful supply network."

The Chart

Shares have been volatile over the past few months. Currently the stock is pulling back which could provide a good entry point once they stabilize. Take a look below.