Supervalu profit beats, shares surge

By @ibtimes on

Supervalu Inc , the third-biggest U.S. supermarket chain by sales, said Thursday that more effective promotions fueled quarterly profit that topped its own expectation, and shares surged 13 percent.

It also forecast full-year net earnings in the range of $1.20 per share to $1.40 per share.

The Minneapolis-based operator of Albertsons, Jewel-Osco and Save-A-Lot grocery stores, which has been cutting prices to get on par with rivals, reported fiscal fourth-quarter net income of $95 million, or 44 cents per share, compared with a year-earlier profit $97 million, or 46 cents per share.

Revenue slipped to $8.7 billion from $9.2 billion a year earlier.

Shares of Supervalu were trading at $10.30 in premarket trading on Thursday, up from their New York Stock Exchange close of $9.08.

(Reporting by Lisa Baertlein)

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