Sara Lee
The 10-second takeaway
For the quarter ended March 31 (Q3), Sara Lee missed estimates on revenues and earnings per share.
Compared to the prior-year quarter, revenue shrank and GAAP earnings per share dropped to a loss.
Margins contracted across the board.
Revenue details
Sara Lee recorded revenue of $1.90 billion. The 10 analysts polled by S&P Capital IQ looked for revenue of $1.95 billion on the same basis. GAAP reported sales were 14% lower than the prior-year quarter's $2.22 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
EPS came in at $0.20. The 12 earnings estimates compiled by S&P Capital IQ forecast $0.25 per share. GAAP EPS were -$0.01 for Q3 versus $0.25 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Margin details
For the quarter, gross margin was 30.9%, 230 basis points worse than the prior-year quarter. Operating margin was 6.8%, 360 basis points worse than the prior-year quarter. Net margin was -0.1%, 700 basis points worse than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $2.01 billion. On the bottom line, the average EPS estimate is $0.25.
Next year's average estimate for revenue is $8.06 billion. The average EPS estimate is $0.92.
Investor sentiment
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Sara Lee is hold, with an average price target of $21.27.
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