At an analyst’s conference this morning, Safeway Inc. (NYSE: SWY) announced its forecast for 2012, and the EPS number came in higher than previous analysts’ expectations. The company forecast EPS of $1.90-$2.10, compared with a previous consensus estimate of $1.88, and sales growth of 1%-2%, roughly equal to the consensus estimate. EPS in 2011 was $1.78.
Competitor Kroger Co. (NYSE: KR), the country’s largest supermarket chain, has also recently raised its outlook for 2012 based on sales increases.
The company said that it had been successful in passing along cost increases to customers and that sales of its higher-profit private-label goods had risen. Safeway plans to invest $900 million in capital spending during the year and expects free cash flow of $850-$950 million.
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