The 10-second takeaway
For the quarter ended April 28 (Q1), Saks missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share increased.
Gross margins increased, operating margins were steady, net margins improved.
Saks notched revenue of $753.6 million. The two analysts polled by S&P Capital IQ foresaw sales of $770.3 million on the same basis. GAAP reported sales were 3.8% higher than the prior-year quarter's $726.0 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 $0.19. The eight earnings estimates compiled by S&P Capital IQ predicted $0.18 per share. GAAP EPS of $0.18 for Q1 were 13% higher than the prior-year quarter's $0.16 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 44.4%, 30 basis points better than the prior-year quarter. Operating margin was 8.7%, about the same as the prior-year quarter. Net margin was 4.3%, 40 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $703.8 million. On the bottom line, the average EPS estimate is -$0.07.
Next year's average estimate for revenue is $3.22 billion. The average EPS estimate is $0.48.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 250 members out of 334 rating the stock outperform, and 84 members rating it underperform. Among 94 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 72 give Saks a green thumbs-up, and 22 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Saks is hold, with an average price target of $11.77.
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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.