The 10-second takeaway
For the quarter ended April 28 (Q1), Sears Holdings met expectations on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank and GAAP earnings per share improved.
Margins expanded across the board.
Sears Holdings reported revenue of $9.27 billion. The three analysts polled by S&P Capital IQ looked for a top line of $9.26 billion on the same basis. GAAP reported sales were 2.8% lower than the prior-year quarter's $9.54 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 -$0.31. The four earnings estimates compiled by S&P Capital IQ forecast -$0.68 per share. GAAP EPS were $1.78 for Q1 versus -$1.58 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 27.7%, 100 basis points better than the prior-year quarter. Operating margin was -0.5%, 130 basis points better than the prior-year quarter. Net margin was 2.0%, 380 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $9.73 billion. On the bottom line, the average EPS estimate is -$1.04.
Next year's average estimate for revenue is $39.50 billion. The average EPS estimate is -$2.85.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 1,478 members rating the stock outperform and 864 members rating it underperform. Among 566 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 330 give Sears Holdings a green thumbs-up, and 236 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 $27.75.
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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.