The 10-second takeaway
For the quarter ended Jan. 28 (Q4), Sears Holdings met expectations on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share contracted to a loss.
Margins dropped across the board.
Sears Holdings reported revenue of $12.48 billion. The three analysts polled by S&P Capital IQ expected sales of $12.44 billion on the same basis. GAAP reported sales were 5.0% lower than the prior-year quarter's $13.14 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.54. The three earnings estimates compiled by S&P Capital IQ forecast $0.78 per share on the same basis. GAAP EPS were -$22.63 for Q4 versus $3.43 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 24.5%, 350 basis points worse than the prior-year quarter. Operating margin was -0.6%, 660 basis points worse than the prior-year quarter. Net margin was -19.2%, 2,200 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $9.46 billion. On the bottom line, the average EPS estimate is -$2.03.
Next year's average estimate for revenue is $40.29 billion. The average EPS estimate is -$5.32.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 1,485 members out of 2,273 rating the stock outperform, and 788 members rating it underperform. Among 553 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 342 give Sears Holdings a green thumbs-up, and 211 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Sears Holdings is hold, with an average price target of $27.25.
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. 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.