Supervalu: Third Quarter Results Deliver the Groceries

Mark Krieger submits:

SUPERVALU (SVU) was long overdue for some good news, and to say third quarter results "pleased" the street is an understatement, as a more accurate description would be they "thrilled" the Street. The company generated earnings of 62 cents, eclipsing estimates by two pennies. A beat by two cents normally isn't noteworthy, but to do it in one of the worst economic climates in history is especially impressive.

The stock has been on fire since the release, climbing more than 16%, on four times average daily volume. SVU's share performance is especially striking, when you factor in the "drubbing" the DJIA has sustained in the last two sessions. Moody's apparently was also impressed, as it raised its ratings on SVU's senior unsecured debt, from B1 to Ba3, with an outlook of stable. Look for additional upgrades in the near future.

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