Ajay Jain Comments: Big Earnings On Thursday: Supervalu, Tiffany

January 10, 2013, Marketwatch

Among the shares expected to see active trade in Thursday’s session are those of Supervalu Inc. and Tiffany & Co.

Supervalu, the Eden Prairie, Minn.-based supermarket chain, is expected to report third-quarter earnings of 7 cents a share, according to the consensus of analyst estimates in a survey by FactSet.

“Supervalu continues to have very serious top line-related challenges. Our most recent data collection for the Q3 time frame is consistent with our general views on fundamentals,” said Ajay Jain at Cantor Fitzgerald & Co.

“We believe that any realistic hopes of unlocking value in the stock near-term will be predicated on completing some asset disposals on a meaningful scale. We continue to like the risk/reward.”

Supervalu found itself much in the headlines over the latter half of 2012 as management undertook a sweeping restructuring — and amid speculation that it might seek a private-equity deal, most recently one involving Cerberus Capital Management LP.

MSC Industrial Direct Co. and Emmis Communications Corp. also are on the early earnings calendar for Thursday.

Tiffany drew investor attention as well, following on a profit update in which the luxury-goods retailer steered Wall Street lower regarding its earnings for the year ending Jan. 31. In light of flat same-store sales over the last two months of 2012, Tiffany said it now sees earnings coming in near the low end of management’s previously projected range of $3.20 to $3.40 a share.

Ceres Inc., Synnex Corp. and Xyratex Ltd. are due to report quarterly results after the bell on Wall Street.

Also later Thursday, San Ramon, Calif.-based Chevron Corp. is scheduled to release its interim fourth-quarter wwwuction update. The oil giant and Dow Jones Industrial Average component is due to report quarterly earnings on Feb. 1.