SpartanNash (NASDAQ:SPTN) shares fell more than 15% on Thursday after the company reported its Q4 results, with EPS of $0.28 missing the Street estimate of $0.32, driven by disappointing operating margins, which were down 74% compared to last year. Revenue was $2.3 billion, compared to the Street estimate of $2.24 billion.
For the full 2023 year, the company expects EPS to be in the range of $2.20-$2.35, compared to the Street estimate of $2.59. Revenue is seen at $9.9-$10.2 billion, compared to the Street estimate of $9.93 billion.
Management raised its long-term sales target to $10.5 billion from $10 billion but held the long-term adjusted EBITDA target at $300 million+, leaving investors to question profitability if top-line sales slow, given a rising cost environment.