CEO Eric Lindberg cites ‘flexible business model, value orientation and localized approach’ as assets in responding to COVID-19
Grocery Outlet Holding Corp. surged past earnings projections for the fiscal 2020 first quarter and, as previously forecast, saw sales grow more than 25%, fueled by heightened consumer demand from the coronavirus outbreak.
For the quarter ended March 28, net income came in at $12.6 million, or 13 cents per diluted share, up 235% from $3.8 million, or 6 cents per diluted share, a year earlier, Grocery Outlet said yesterday after the market close. In reporting preliminary results on April 20, Grocery Outlet had estimated first-quarter net income of $8.8 million to $9.9 million.
Adjusted net earnings rose 242.2% to $34 million, or 36 cents per diluted share, from $9.9 million, or 15 cents per diluted share, a year ago. Among other items, the result reflects $20.3 million in stock-based compensation costs, largely related to a secondary share offering on Feb. 3, partially offset by an $8.3 million tax effect from total adjustments, Grocery Outlet reported.
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Analysts, on average, had projected adjusted net earnings per share (EPS) of 25 cents, with estimates ranging from 19 cents to 32 cents, according to Refinitiv/Thomson Reuters.
Source: Supermarket News