The grocery store operator said it expects earnings of between 27 cents and 40 cents a share for the year. Analysts surveyed by Thomson Reuters expect earnings of 74 cents a share for the year, well above the company's current forecast.
While the company's forecast is weak, Rooundy's beat analysts' expectations during the fourth quarter. The company reported earnings of 25 cents a share, beating analysts' estimates of 17 cents a share. Roundy's reported revenue of $1 billion for the quarter, which was in-line with analysts' estimates.
Must read: Short Interest In Roundy's Expands By 44.7%
TheStreet Ratings team rates ROUNDY'S INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about its recommendation:
"We rate ROUNDY'S INC (RNDY) a SELL. This is driven by multiple weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally high debt management risk, disappointing return on equity, poor profit margins and feeble growth in its earnings per share."
Highlights from the analysis by TheStreet Ratings Team goes as follows: