Roundy's Beats Q2 Views, Shares Surge

Shares of Roundy's Inc (NASDAQ: RNDY) gained more than 4 percent in after-hours trading after the company reported stronger-than-expected results for the second quarter.

The Milwaukee, Wisconsin-based company reported quarterly net loss from continuing operations of $1.4 million, or $0.03 per share, versus net loss from continuing operations of $5.0 million, or $0.10 per share, in the year-ago quarter. Its adjusted net loss from continuing operations narrowed to $0.02 per share from $0.03 per share.

Its net sales from continuing operations climbed 5.9 percent year-over-year to $998.3 million from $942.9 million. However, analysts were expecting a loss of $0.04 per share on revenue of $984.4 million.

Net sales for its Wisconsin markets fell 3.5 percent year-over-year to $648.2 million, while sales for Illinois market gained 29.1 percent to $350.1 million for the second quarter.

Its same-store sales from continuing operations slipped 3.9 percent in the quarter. Number of customer transactions fell 4.9 percent, while average transaction size gained 1.0 percent.

Gross profit for the second quarter climbed 5.9 percent to $263.7 million in the quarter. Operating and administrative expenses surged to $252.1 million for the second quarter, versus $239.1 million in the year-ago period.

Its adjusted EBITDA from continuing operations climbed to $30.1 million from $28.2 million.

"During the second quarter of 2015, we exceeded our net sales and same-store sales targets and we achieved our EBITDA target for the quarter," said Robert A. Mariano, chairman, president and chief executive officer of Roundy's. "We remain committed to achieving sustainable top-line growth by strengthening our brands in Wisconsin and expanding our growth banner, Mariano's, in Illinois. Our Mariano's banner celebrated its five-year anniversary with the opening of our 32nd Mariano's store in June."

For the third quarter, the company expects adjusted loss of $0.06 to $0.12 per share, on revenue of $975 million to $985 million. Analysts projected a loss of $0.08 per share on revenue of $999.66 million.

For fiscal 2015, Roundy's projects adjusted loss of $0.06 to $0.17 per share, on revenue of $3.95 billion to $3.99 billion. Analysts expected a loss of $0.10 per share on revenue of $4.00 billion.

Roundy's shares climbed 4.56 percent to $2.75 in the after-hours trading session.