IMKTA published its earnings report for the second quarter last week on May 5th
Ingles Markets, Incorporated (NASDAQ: IMKTA) is an American regional supermarket chain based in Black Mountain, North Carolina. The company operates in six southeastern states and operates a total of around 201 supermarkets. In addition to the supermarket business, Ingles also owns and operates shopping centers, gas stations and a milk processing plant.
On May 5, Ingles Markets reported sales and net income for the second quarter of the fiscal year. For the second fiscal quarter of 2021, net sales were $ 1.18 billion and gross income was $ 310.5 million, or 26.2% of sales. The company’s operating and administrative expenses were $ 236.9 million compared to $ 228.4 million for the year-ago quarter. The increase in spending was due to higher costs to support additional security measures related to the COVID-19 pandemic. Additionally, IMKTA’s net income for the second quarter was $ 52.2 million and quarterly earnings were $ 2.65 per share.
IMKTA has grown over 40% in the last 12 months and has increased by over 66% in the last six months. Additionally, the stock hit an all-time high during yesterday’s session, and while the stock is pulling back today, falling 3.1% to $ 63.39 on its last review, the 10-day moving average contained most of those negatives Price movement. A little further down, the 50-day moving average could move again as potential support.
Despite this impressive price move, short interest continues to rise and now accounts for a solid 9% of the stock’s available float. It would take over two weeks to cover all of these bearish bets, leaving plenty of room for a quick squeeze for added security.
Overall, Ingles Markets has seen strong sales and earnings growth since the pandemic began. For fiscal 2020, the company had sales of $ 4.61 billion, an increase of 9.7% over fiscal 2019. IMKTA also posted net income of $ 178.6 million, an increase of nearly 120% over the previous year.
In addition, IMKTA has already increased its trailing sales after twelve months to 4.76 billion US dollars and its trailing net profit after twelve months to 226.6 million US dollars. In addition, Ingles Markets shares are currently trading at an extremely attractive price-earnings-ratio of 5.66. The only real disadvantage for IMKTA is the balance sheet. The company only has $ 8.86 million in cash while total debt is $ 694.89 million.