Earnings Results: Grocery Outlet tops earnings estimates, names new CEO

by | Nov 8, 2022 | Stock Market

Shares of Grocery Outlet Holding Corp. slid nearly 4% in the extended session Tuesday after the discount grocery reported quarterly earnings above Wall Street estimates and said that it will have a new chief executive next year. Grocery Outlet
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+4.29%
earned $17.5 million, or 17 cents a share, in the fiscal third quarter, compared $17.1 million, or 17 cents a share, in the year-ago period.

Adjusted for one-time items, Grocery Outlet earned 27 cents a share. Sales rose 19% to $918.2 million, the company said. Analysts polled by FactSet expected adjusted EPS of 26 cents on sales of $881 million. In a separate statement, the company said that Chief Executive Eric Lindberg will step down as chief executive to become chairman of the board effective Jan. 1. President RJ Sheedy will will become the new CEO and will also be appointed to the board, Grocery Outlet said. Erik D. Ragatz, the current chairman, will become the board’s lead independent director. The company also tweaked higher its outlook for fiscal 2022, calling for sales of about $3.55 billion, up from a previous estimate of sales between $3.46 billion and $3.48 billion. It guided for adjusted EPS of around $1, from an earlier guidance of between 97 cents a share and $1 a share. Shares of Grocery Outlet ended the regular trading day up 4.3%. The stock has gained 21% so far this year, contrasting with losses of around 20% for the S& …

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