Harris Teeter Supermarkets
The 10-second takeaway
For the quarter ended July 1 (Q3), Harris Teeter Supermarkets met expectations on revenue and met expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank slightly and GAAP earnings per share shrank significantly.
Gross margins grew, operating margins dropped, and net margins contracted.
Harris Teeter Supermarkets notched revenue of $1.15 billion. The three analysts polled by S&P Capital IQ expected to see net sales of $1.16 billion on the same basis. GAAP reported sales were 3.0% lower than the prior-year quarter's $1.19 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.62. The four earnings estimates compiled by S&P Capital IQ forecast $0.62 per share. GAAP EPS of $0.32 for Q3 were 52% lower than the prior-year quarter's $0.66 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 30.2%, 90 basis points better than the prior-year quarter. Operating margin was 2.8%, 200 basis points worse than the prior-year quarter. Net margin was 1.4%, 130 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.19 billion. On the bottom line, the average EPS estimate is $0.60.
Next year's average estimate for revenue is $4.60 billion. The average EPS estimate is $2.37.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 79 members out of 96 rating the stock outperform, and 17 members rating it underperform. Among 33 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 26 give Harris Teeter Supermarkets a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Harris Teeter Supermarkets is buy, with an average price target of $47.20.
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