The 10-second takeaway
For the quarter ended Feb. 2 (Q4), Sears Holdings beat expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped slightly. Non-GAAP earnings per share grew significantly. GAAP loss per share dropped.
Gross margins expanded, operating margins dropped, net margins expanded.
Sears Holdings notched revenue of $12.26 billion. The three analysts polled by S&P Capital IQ predicted revenue of $11.90 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $1.12. The three earnings estimates compiled by S&P Capital IQ anticipated $1.12 per share. Non-GAAP EPS of $1.12 for Q4 were 107% higher than the prior-year quarter's $0.54 per share. (The prior-year quarter included -$0.16 per share in earnings from discontinued operations.) GAAP EPS were -$4.61 for Q4 against -$22.63 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 25.8%, 50 basis points better than the prior-year quarter. Operating margin was -2.6%, 360 basis points worse than the prior-year quarter. Net margin was -4.0%, much better than the prior-year quarter.
On the bottom line, the average EPS estimate is -$0.65.
Next year's average estimate for revenue is $36.48 billion. The average EPS estimate is -$2.31.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 1,485 members out of 2,329 rating the stock outperform, and 844 members rating it underperform. Among 556 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 336 give Sears Holdings a green thumbs-up, and 220 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Sears Holdings is hold, with an average price target of $28.33.
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