SpartanNash Stock Plummets as Interest Expenses Weigh on Earnings

☀️Trending News

SPARTANNASH ($NASDAQ:SPTN): SpartanNash Company‘s stock has been on a downward trend, as interest expenses have weighed heavily on its earnings. The company has a high debt load, which has caused operating income and earnings to decrease. This is posing a huge challenge for the retail grocery and military distribution company, and investors are taking note. SpartanNash Company is one of the leading food distributors in the United States, serving military customers across the country. The company also distributes food to hundreds of independent retail locations nationwide. In addition to its retail stores, SpartanNash also distributes food items to various wholesale customers. This includes supplying food to hospitals, schools, restaurant chains, and other institutional customers.

However, the high debt load associated with these businesses is increasingly hurting SpartanNash’s financial performance. Interest expenses on the company’s debt have risen significantly in recent quarters. This has caused a decline in both operating income and earnings. This marked the ninth consecutive quarter of losses for the company. The situation at SpartanNash has become a concerning one for investors. With high levels of debt and ever-increasing interest expenses, the company’s financials are under pressure. Investors interested in getting more information about SPTN stock should check out its stock price and research its financials before investing.

Earnings

SPARTANNASH COMPANY recently released its earning report of FY2023 Q2 ending April 30, 2021, revealing a total revenue of 2657.8M USD and a net income of 19.52M USD. Although the company saw an increase of 1.2% in net income, compared to the previous year, the total revenue plummeted by 3.8%. Nevertheless, SPARTANNASH COMPANY’s total revenue has grown from 2657.8M USD to 2907.39M USD within the last three years.

This decrease in total revenue was attributed to the high interest expenses incurred by the company. As a result, the stock performance for SPARTANNASH COMPANY has taken a hit and plummets in response to these financial results.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Spartannash Company. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Spartannash Company. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Spartannash Company. More…

Key Ratios Snapshot

Some of the financial key ratios for Spartannash Company are shown below. More…

Market Price

On Wednesday, SPARTANNASH COMPANY stock opened at $22.8 and closed at $23.2, up by 1.8% from its prior closing price of $22.8. However, the company’s earnings for the second quarter were weighed down by increased interest expenses. The company’s rising interest expenses are worrisome for investors as it suggests that the company is increasingly relying on debt to finance its operations and is not generating enough cash flow to cover these payments. This could have long-term implications for the company if it cannot turn its financial situation around in the near future. Live Quote…

Analysis

At GoodWhale, we have analyzed SPARTANNASH COMPANY‘s fundamentals as part of our Risk Rating process. We are pleased to report that SPARTANNASH COMPANY is a low risk investment in terms of financial and business aspects. Despite this, we have detected 1 risk warning in the income sheet which investors should take into consideration. If you would like to review this warning, please register on goodwhale.com for full access to our analysis. More…

Peers

The company operates in the United States and Canada. The company’s competitors include Metcash Ltd, Amcon Distributing Co, and United Natural Foods Inc.

– Metcash Ltd ($ASX:MTS)

Metcash Ltd is a food and grocery distributor in Australia. The company has a market cap of 3.8B as of 2022 and a Return on Equity of 21.5%. Metcash Ltd distributes food and grocery products to independent retailers in Australia. The company offers a range of products including groceries, fresh food, alcohol, and general merchandise. Metcash Ltd also provides logistics and supply chain management services to its customers.

– Amcon Distributing Co ($NYSEAM:DIT)

Amcon Distributing Company is a wholesale distributor of consumer products, including cigarettes, cigars, and other tobacco products; foodservice equipment and supplies; and janitorial, sanitation, and paper products. The company operates in three segments: Cigarettes and Tobacco Products, Foodservice Equipment and Supplies, and Janitorial, Sanitation, and Paper Products. It distributes its products through a network of distribution centers and sales offices in the United States.

– United Natural Foods Inc ($NYSE:UNFI)

UNFI is a leading distributor of natural, organic, and specialty foods in the United States and Canada. The company has a market cap of 2.65B as of 2022 and a ROE of 16.04%. UNFI is a publicly traded company on the Nasdaq Stock Market and is headquartered in Providence, Rhode Island.

Summary

SpartanNash is a grocery distributor and retailer whose stock has been affected by rising interest rates and high debt. This has put downward pressure on its operating income and earnings. Despite this, the company has taken recent actions to reduce its total debt and improve liquidity, which should support its balance sheets in the long run.

Investors should be aware of the current risks, but also the potential for long-term gains from a strong balance sheet. Analysts suggest further cost-cutting and debt reduction could help to further improve SpartanNash’s financial position and earnings growth in the future.