SUPERVALU Inc. (SVU) reported lower-than-expected earnings of $0.24 per share in the third quarter of fiscal 2010. Earnings declined 52.9% year-over-year and were 22.6% lower than the Zacks Consensus Estimate of $0.31. Net sales for the quarter declined 5.9% year-over-year to $8,673 million, primarily because of declines in the retail food segment and supply chain services segment. Therefore, the company lowered its guidance for fiscal 2011. Furthermore, intense competition in the retail food segment concerns us, while the significant unionized labor force at SUPERVALU has inherent risks. As such the Underperform rating is maintained. SUPERVALU INC (SVU): Free Stock Analysis Report Zacks Investment Research
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