Safeway (NYSE: SWY) reported earnings on July 18. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended June 15 (Q2), Safeway missed estimates on revenues and beat slightly on earnings per share.

Compared to the prior-year quarter, revenue dropped slightly. Non-GAAP earnings per share was unchanged. GAAP earnings per share dropped significantly.

Margins contracted across the board.

Revenue details
 Safeway booked revenue of $10.22 billion. The 13 analysts polled by S&P Capital IQ predicted revenue of $10.44 billion on the same basis. GAAP reported sales were 16% lower than the prior-year quarter's $10.39 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 $0.51. The 15 earnings estimates compiled by S&P Capital IQ forecast $0.50 per share. Non-GAAP EPS of $0.51 were the same as the prior-year quarter. GAAP EPS of $0.04 for Q2 were 92% lower than the prior-year quarter's $0.51 per share. (The prior-year quarter included $0.01 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 26.2%, 10 basis points worse than the prior-year quarter. Operating margin was 1.6%, 80 basis points worse than the prior-year quarter. Net margin was 0.1%, 110 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
 Next quarter's average estimate for revenue is $10.25 billion. On the bottom line, the average EPS estimate is $0.45.

Next year's average estimate for revenue is $44.71 billion. The average EPS estimate is $2.28.

Investor sentiment
 The stock has a two-star rating (out of five) at Motley Fool CAPS, with 376 members out of 458 rating the stock outperform, and 82 members rating it underperform. Among 141 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 122 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 $25.40.

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