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SpartanNash (SPTN) Queues Up for Q2 Earnings: What's in Store?

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SpartanNash Company (SPTN - Free Report) is likely to register a decline in both the top and the bottom line when it reports second-quarter 2021 results on Aug 18, 2021, after the closing bell. The Zacks Consensus Estimate for revenues is pegged at $2,132 million, indicating a decrease of 2.5% from the prior-year quarter’s reported figure.

The Zacks Consensus Estimate of 53 cents for the June-quarter’s earnings suggests a plunge of nearly 27% from 73 cents per share reported in the year-ago period. The consensus mark has been stable over the past 30 days.

The company has a trailing four-quarter earnings surprise of 6.5%, on average. In the last reported quarter, this distributor and retailer of grocery products’ bottom line beat the Zacks Consensus Estimate by 1.8%.

Factors to Note

SpartanNash is likely to have faced tough year-over-year comparisons in sales as COVID-19 benefits are lapped. Industry experts believe that lower at-home consumption activities and a drop in the pantry-loading trends might have hurt the company’s top-line performance. Any deleverage in operating expenses is likely to show on the company’s bottom-line performance in the upcoming quarterly release. The company has been witnessing steep supply-chain expenses for a while now.

The impact of domestic base access and commissary shopping restrictions with respect to the coronavirus is persistently hurting the company’s Military segment to some extent. This might have weighed on the segment’s sales in the quarter under review.

On the flip side, SpartanNash has been focusing on streamlining its operations and making strategic investments including expansion of capabilities across its supply-chain and distribution centers.

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. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

SpartanNash has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell), making surprise prediction difficult.

Stocks With Favorable Combination

Here are some companies you may want to consider as our model shows that these have the right combination of elements to beat on earnings this season:

Target (TGT - Free Report) currently has an Earnings ESP of +4.93% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Domino's Pizza (DPZ - Free Report) has an Earnings ESP of +1.10% and is presently Zacks #3 Ranked.

Costco (COST - Free Report) has an Earnings ESP of +0.44% and a Zacks Rank of 3 at present.

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