Harris Teeter Supermarkets Meets on Revenues, Misses on EPS

Harris Teeter Supermarkets (NYSE: HTSI  ) reported earnings on Jan. 31. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Jan. 1 (Q1), Harris Teeter Supermarkets met expectations on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue increased and GAAP earnings per share grew significantly.

Gross margins dropped, operating margins shrank, net margins grew.

Revenue details
Harris Teeter Supermarkets recorded revenue of $1.16 billion. The three analysts polled by S&P Capital IQ expected revenue of $1.18 billion on the same basis. GAAP reported sales were 3.7% higher than the prior-year quarter's $1.12 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 $0.46. The four earnings estimates compiled by S&P Capital IQ forecast $0.58 per share. GAAP EPS of $0.46 for Q1 were 64% higher than the prior-year quarter's $0.28 per share. (The prior-year quarter included -$0.25 per share in earnings from discontinued operations.)

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 28.8%, 40 basis points worse than the prior-year quarter. Operating margin was 3.5%, 60 basis points worse than the prior-year quarter. Net margin was 2.0%, 80 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.17 billion. On the bottom line, the average EPS estimate is $0.60.

Next year's average estimate for revenue is $4.80 billion. The average EPS estimate is $2.27.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 82 members out of 100 rating the stock outperform, and 18 members rating it underperform. Among 34 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 28 give Harris Teeter Supermarkets a green thumbs-up, and six give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Harris Teeter Supermarkets is hold, with an average price target of $47.20.

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