GO - Why Grocery Outlet Holding Is Down More Than 10% This Afternoon
Grocery Outlet Holding (NASDAQ: GO) may have topped last quarter's sales and earnings estimates and upped its full-year guidance. But news that CEO Eric Lindberg will be stepping down at the end of the year is upending the stock. Shares of the discount grocery store chain are down 10.1% as of 12:08 p.m. ET on Wednesday.
For the three-month stretch ending in early October, Grocery Outlet Holding turned $918.2 million worth of sales into per-share profits of $0.27. Earnings were up from the year-ago comp of $0.24, while the top line grew 19.4% from the company's third-quarter 2021 sales of $768.9 million. Both figures beat Wall Street's estimates, as did Grocery Outlet Holding's revised outlook. The company's previous 2022 revenue guidance range from $3.46 billion to $3.48 billion is raised and tightened to a singular figure of $3.55 billion, while its profit outlook of between $0.97 and $1 per share is now just $1 per share.
Perhaps most notably, same-store sales growth guidance of 8% to 8.5% was upped to 11% following last quarter's same-store sales growth of 15.4%
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Why Grocery Outlet Holding Is Down More Than 10% This Afternoon