Weis Markets, Inc. (NYSE:WMK) reported a modest sales increase of 0.8% to $1.16 billion for the third quarter of 2023, coupled with a similar increase in comparable store sales and an 8.7% rise in two-year stacked basis sales. However, the company also experienced a significant drop in net income by 19%, bringing it down to $23.23 million and causing earnings per share to decrease to $0.86.
In the face of inflation and higher interest rates, the company's year-to-date results mirrored the Q3 pattern. Sales rose by 2.8%, comparable store sales increased by 2.5%, and a two-year stacked basis saw an increase of 11.1%. However, net income fell by 13.5%, which lowered earnings per share to $3.10.
Despite these challenging market conditions, Jonathan H. Weis, Chairman, President, and CEO of Weis Markets, stated that these results are consistent with expectations. He emphasized the company's commitment to efficiency and long-term growth strategies.
As part of these strategies, Weis Markets declared a dividend payout of $0.34 per share for November 20, 2023. The company is also expanding its Low, Low Price program, which offers savings on over 10,000 products. The firm is making careful reinvestments aimed at benefiting all stakeholders as part of their long-term growth strategy.
InvestingPro Insights
Weis Markets, Inc. has been a strong player in the market with a high return on invested capital, according to InvestingPro Tips. The company's management has been able to maintain strong earnings, allowing for consistent dividend payments. This is reflected in the fact that Weis Markets has raised its dividend for three consecutive years.
InvestingPro Data reveals that Weis Markets has a market cap of 8710M USD and a P/E ratio of 18.72. In the last twelve months as of Q2 2024, the company has generated a revenue of 2830.99M USD. Despite a decline in revenue growth, the company managed to maintain a gross profit margin of 38.17%, demonstrating its efficiency.
In addition to these metrics, InvestingPro Tips highlight the company's consistent increase in earnings per share and the upward revision of earnings by three analysts for the upcoming period. This suggests a positive outlook for the company's future performance.
For more detailed insights and tips, consider exploring the InvestingPro platform, which offers a wealth of information to guide your investment decisions. With InvestingPro, you have access to a vast array of tips, with 18 more available specifically for Weis Markets Inc.
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