The 10-second takeaway
For the quarter ended March 31 (Q4), Spartan Stores missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share expanded significantly.
Gross margins dropped, operating margins dropped, and net margins improved.
Spartan Stores reported revenue of $614.8 million. The three analysts polled by S&P Capital IQ looked for revenue of $627.6 million on the same basis. GAAP reported sales were 7.6% higher than the prior-year quarter's $571.5 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 $0.46. The five earnings estimates compiled by S&P Capital IQ averaged $0.39 per share. GAAP EPS of $0.46 for Q4 were 35% higher than the prior-year quarter's $0.34 per share. (The prior-year quarter included $0.01 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 22.0%, 130 basis points worse than the prior-year quarter. Operating margin was 3.2%, 20 basis points worse than the prior-year quarter. Net margin was 1.7%, 30 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $612.0 million. On the bottom line, the average EPS estimate is $0.28.
Next year's average estimate for revenue is $2.66 billion. The average EPS estimate is $1.44.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 124 members out of 131 rating the stock outperform, and seven members rating it underperform. Among 38 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 37 give Spartan Stores a green thumbs-up, and one gives 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 $20.60.
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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.