The 10-second takeaway
For the quarter ended March 23 (Q1), Safeway missed slightly on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue was unchanged. Non-GAAP earnings per share grew significantly. GAAP earnings per share grew significantly.
Gross margins dropped, operating margins dropped, net margins expanded.
Safeway notched revenue of $9.99 billion. The 15 analysts polled by S&P Capital IQ expected to see revenue of $10.16 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 $0.35. The 19 earnings estimates compiled by S&P Capital IQ averaged $0.36 per share. Non-GAAP EPS of $0.35 for Q1 were 17% higher than the prior-year quarter's $0.30 per share. (The prior-year quarter included -$0.03 per share in earnings from discontinued operations.) GAAP EPS of $0.49 for Q1 were 81% higher than the prior-year quarter's $0.27 per share. (The prior-year quarter included -$0.03 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 26.7%, 10 basis points worse than the prior-year quarter. Operating margin was 1.8%, 10 basis points worse than the prior-year quarter. Net margin was 1.2%, 50 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $10.44 billion. On the bottom line, the average EPS estimate is $0.51.
Next year's average estimate for revenue is $44.75 billion. The average EPS estimate is $2.28.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 377 members out of 463 rating the stock outperform, and 86 members rating it underperform. Among 131 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 112 give Safeway a green thumbs-up, and 19 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Safeway is hold, with an average price target of $23.50.
Can your portfolio provide you with enough income to last through retirement? You'll need more than Safeway. Learn how to maximize your investment income and "Secure Your Future With 9 Rock-Solid Dividend Stocks." Click here for instant access to this free report.
- Add Safeway to My Watchlist.