Nash Finch Co. posted a slight decrease in profits Thursday but still blew through analysts' earnings expectations, led by its surging grocery supply business to military bases.
The Edina-based grocery wholesaler recorded fourth- quarter net profit -- excluding one-time items -- of $12.7 million or 97 cents per share, down 2.5 percent. Analysts polled by Thomson Reuters were on average forecasting earnings of 82 cents per share.
The company's stock rose $1.87, or 7 percent, to $28.68.
When not adjusted for one-time items, Nash Finch's net fourth-quarter earnings were $8.2 million, or 62 cents per share, down from $16.9 million, or $1.30 per share.
Fourth-quarter sales of $1.14 billion were roughly in line with analysts' estimates and down from $1.15 million a year ago. The firm's military segment saw revenue rise 5.4 percent from a year earlier to $564 million.
The military business' profits before interest, taxes and depreciation climbed 21.2 percent over 2010's fourth quarter, buoyed by increased sales and inventory management improvements.
Nash Finch's traditional grocery distribution and retail supermarket business posted quarterly revenue of $572.5 million, down 6.4 percent from a year earlier. The segment's earnings before interest, taxes and depreciation fell 14.6 percent.
Mike Hughlett • 612-673-7003
