The 10-second takeaway
For the quarter ended Dec. 3 (Q3), SUPERVALU missed slightly on revenues and missed on earnings per share.
Compared to the prior-year quarter, revenue dropped, and earnings per share contracted.
Gross margins expanded, operating margins expanded, net margins shrank.
SUPERVALU logged revenue of $8.3 billion. The 11 analysts polled by S&P Capital IQ expected sales of $8.4 billion. Sales were 4.0% lower than the prior-year quarter's $8.7 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.24. The 16 earnings estimates compiled by S&P Capital IQ predicted $0.25 per share on the same basis. GAAP EPS were -$3.54 for Q3 versus -$0.95 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 21.7%, 20 basis points better than the prior-year quarter. Operating margin was 2.4%, 70 basis points better than the prior-year quarter. Net margin was -9.0%, 670 basis points worse than the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods.
What does the future hold?
Next quarter's average estimate for revenue is $8.3 billion. On the bottom line, the average EPS estimate is $0.37.
Next year's average estimate for revenue is $36.0 billion. The average EPS estimate is $1.25.
The stock has a four-star rating out of five) at Motley Fool CAPS, with 824 members out of 871 rating the stock outperform, and 47 members rating it underperform. Among 237 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 225 give SUPERVALU a green thumbs-up, and 12 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on SUPERVALU is hold, with an average price target of $9.11.
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