The 10-second takeaway
For the quarter ended July 28 (Q2), Sears Holdings missed estimates on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank and GAAP loss per share dropped.
Gross margins grew, operating margins increased, net margins were steady.
Sears Holdings chalked up revenue of $9.47 billion. The three analysts polled by S&P Capital IQ wanted to see sales of $9.68 billion on the same basis. GAAP reported sales were 8.4% lower than the prior-year quarter's $10.33 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 -$0.86. The four earnings estimates compiled by S&P Capital IQ averaged -$0.96 per share. GAAP EPS were -$1.25 for Q2 versus -$1.37 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 26.7%, 70 basis points better than the prior-year quarter. Operating margin was -1.2%, 30 basis points better than the prior-year quarter. Net margin was -1.4%, about the same as the prior-year quarter.
Next quarter's average estimate for revenue is $8.81 billion. On the bottom line, the average EPS estimate is -$2.39.
Next year's average estimate for revenue is $39.43 billion. The average EPS estimate is -$2.60.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 1,479 members out of 2,332 rating the stock outperform, and 853 members rating it underperform. Among 577 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 325 give Sears Holdings a green thumbs-up, and 252 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Sears Holdings is underperform, with an average price target of $29.00.
If you're invested in retailers like Sears Holdings, you should check out the concept that is The Motley Fool's top stock for 2012. Its founder wrote the book on big box retailing, and it's growing in increasingly important international markets. Click here for instant access to this free report.
- Add Sears Holdings to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.