Shares of SpartanNash (NASDAQ:SPTN) fell as much as 10% on Thursday after the company missed sales estimates for the first quarter, which overshadowed its earnings beat.
The U.S. food distributor posted Q1 non-GAAP EPS of $0.64, beating estimates by 4 cents. Sales of $2.91 billion were up 5.4% from last year but came below expectations by at least $40 million.
Net earnings for Q1 were $11.3 million, down 41.5% from last year.
Key Q1 metrics: gross profit $446.7 million, adjusted EBITDA $76.8 million, cash flows used in operating activities $2.7 million, operating expenses $422.4 million, operating earnings $24.3 million, and retail comparable sales up 5.4%.
The company also declared a quarterly dividend of $0.215/share, which was in line with its previous payouts.
For fiscal 2023, the company continues to expect sales to be around $9.9 and $10.2 billion, adjusted EBITDA between $248-$263 million, and an adjusted profit of $2.20 and $2.35 per share.
The Seeking Alpha consensus estimate for 2023 sales is $10.1 billion, and adjusted EPS is $2.25.
Capex and IT capital for 2023 are expected to be around $130–$145 million.