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Winn-Dixie (NASDAQ:WINN) is expected to report Fiscal 2010 third quarter results prior to the market open, this coming Tuesday, May 11. Analysts have pegged the supermarket operator to deliver earnings of 25 cents on revenues of $1.68 billion. These numbers translate into a 17% decrease in earnings, on a 3% sales slide, and are likely too conservative. WINN is way past due for putting up a solid quarter, and should come in closer to the 28 cents mark, on sales of $1.70 billion, thanks to traction achieved in its fuel rewards program and an overall abatement of deflationary pressures.
WINN share price plummets
Last week’s 5.8% dubbing of the Dow, was nothing compared to the hammering WINN endured. Its shares lost nearly 10% or about 1.6 times what the overall market experienced. This fact was a little surprising, since the stock is in a defensive sector with a low 1.11 beta reading. The stock’s dive provides a decent buying opportunity for those looking to capitalize on the upcoming earnings event. Management has historically been proficient at playing the “under promise, over deliver” game, making the probability of a “beat” reasonable, and setting the stage for an immediate 20% price mark up.

Disclosure: Long WINN
Source: Previewing Winn-Dixie's Third Quarter Results