Publix’s solid Q2 earnings helped by lower tax rate

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Publix’s solid Q2 earnings helped by lower tax rate

08/01/2018
Publix has seen a slight jump in sales from its previous year, and its earnings are benefiting from a lower tax rate, based on the second-quarter sales results the Lakeland, Fla.-based company unveiled Wednesday.

For the three months ended June 30, Publix said it saw sales at $8.8 billion. A 4% jump from 2017’s $8.4 billion. Comparable-store sales rose 1.7%, and net earnings were at $616.2 million compared with the previous year’s $495.1 million — showing an increase of 24.5%. The retailer's sales estimates were impacted roughly 1.2% due to Easter falling within the year's first-quarter results as opposed to the second.

Earnings per share for the same period jumped up to $0.84, compared with its previous $0.65.

Publix said its net earnings and earnings per share received a boost from the decrease in the federal statutory income tax rate from 35% to 21% due to the Tax Cuts and Job Acts of 2017. It also saw an impact from a new accounting standard, which requires equity securities measured at fair value with unrealized gains and losses from changes in the fair value recognized in earnings, the company said.

Sales for the six months ended in the same period saw a 5.4% increase to $18 billion and comparable-store sales saw a 3.4% jump.

“Since the beginning of the year, our stock price has increased from $36.85 to $42.55, over 15%,” Todd Jones, president and CEO of Publix, said. “Our associates deserve the credit for continuing to make us a leader in customer service.”

The company’s stock price also saw an increase from $41.75 per share to $42.55 per share.