The 10-second takeaway
For the quarter ended Dec. 31 (Q3), Spartan Stores met expectations on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved slightly and GAAP earnings per share shrank significantly.
Margins contracted across the board.
Spartan Stores recorded revenue of $797.2 million. The two analysts polled by S&P Capital IQ expected to see net sales of $807.2 million on the same basis. GAAP reported sales were 1.9% higher than the prior-year quarter's $782.3 million.
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 $0.22. The three earnings estimates compiled by S&P Capital IQ forecast $0.21 per share. GAAP EPS of $0.22 for Q3 were 31% lower than the prior-year quarter's $0.32 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 20.4%, 70 basis points worse than the prior-year quarter. Operating margin was 1.6%, 20 basis points worse than the prior-year quarter. Net margin was 0.6%, 30 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $638.5 million. On the bottom line, the average EPS estimate is $0.44.
Next year's average estimate for revenue is $2.67 billion. The average EPS estimate is $1.41.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 127 members out of 135 rating the stock outperform, and eight members rating it underperform. Among 42 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 40 give Spartan Stores a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Spartan Stores is outperform, with an average price target of $20.00.
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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. 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.