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Factors Likely to Influence SpartanNash (SPTN) in Q3 Earnings

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SpartanNash Company (SPTN - Free Report) is likely to register top- and bottom-line growth when it reports third-quarter 2020 numbers on Nov 11, after the closing bell. The Zacks Consensus Estimate for net sales is pegged at $2,152 million, which indicates an increase of 7.6% from the year-ago quarter’s reported figure. The company had witnessed top-line growth of 9.4% in the last reported quarter.

The Zacks Consensus Estimate for quarterly earnings has remained stable in the past 30 days and is currently pegged at 62 cents per share. The consensus estimate suggests a significant rise from earnings of 30 cents reported in the year-ago quarter. Notably, the company has a trailing four-quarter earnings surprise of 21.5%, on average. In the last reported quarter, this Michigan-based company’s bottom line came in at 73 cents per share, which surpassed the Zacks Consensus Estimate by 17.7%.

Aspects Likely to Show on Q3 Performance

SpartanNash’s top line during the third quarter is likely to have benefitted from enhanced at-home consumption trends triggered by the ongoing coronavirus pandemic. With safety and social distancing being a priority, consumers are seen to prefer dining at home as well as resort to stock-piling in an effort to reduce frequent store visits. Well these practices are likely to have led to higher consumer demand, thereby boosting the company’s sales volumes across retail and food distribution segments.

Moreover, the company is likely to have benefitted from sturdy growth in e-commerce sales, during the quarter under review. Notably, SpartanNash’s e-commerce channel has been soaring on the back of consumer’s augmented interests toward online transactions. To bolster online services, the company is on track with increasing staff strength engaged in delivery operations. Apart from these, the company has also been on track with boosting supply-chain efficiencies to suitably cater to the enhanced demand conditions.

However, we note that the company has been incurring higher expenses in respect of additional safety and cleansing measures on account of the pandemic, as well as increased pay and benefits for workers. Such expenses are likely to have exerted some pressure on the company’s performance during the quarter under review.

SpartanNash Company Price, Consensus and EPS Surprise


SpartanNash Company Price, Consensus and EPS Surprise

SpartanNash Company price-consensus-eps-surprise-chart | SpartanNash Company Quote


What the Zacks Model Unveils

Our proven model doesn’t conclusively predict an earnings beat for SpartanNash this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

SpartanNash carries a Zacks Rank #3 and an Earnings ESP of +0.00%.

Stocks Poised to Beat Earnings Estimates

Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat.

Lowes Companies, Inc. (LOW - Free Report) currently has an Earnings ESP of +2.90% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Dollar General Corporation (DG - Free Report) currently has an Earnings ESP of +8.17% and a Zacks Rank #2.

Best Buy Co., Inc. (BBY - Free Report) has an Earnings ESP of +14.92% and a Zacks Rank #2, at present.

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