The 10-second takeaway
For the quarter ended June 16 (Q1), SUPERVALU missed estimates on revenue and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue contracted and GAAP earnings per share shrank significantly.
Margins shrank across the board.
SUPERVALU booked revenue of $10.59 billion. The 11 analysts polled by S&P Capital IQ anticipated a top line of $10.81 billion on the same basis. GAAP reported sales were 4.7% lower than the prior-year quarter's $11.11 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 $0.19. The 16 earnings estimates compiled by S&P Capital IQ predicted $0.38 per share. GAAP EPS of $0.19 for Q1 were 46% lower than the prior-year quarter's $0.35 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 22.0%, 10 basis points worse than the prior-year quarter. Operating margin was 2.0%, 50 basis points worse than the prior-year quarter. Net margin was 0.4%, 30 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $8.17 billion. On the bottom line, the average EPS estimate is $0.29.
Next year's average estimate for revenue is $35.19 billion. The average EPS estimate is $1.29.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 928 members out of 995 rating the stock outperform, and 67 members rating it underperform. Among 254 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 233 give SUPERVALU a green thumbs-up, and 21 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on SUPERVALU is hold, with an average price target of $6.94.
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Seth Jayson owned shares of the following at the time of publication: SUPERVALU. 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. The Motley Fool owns shares of SUPERVALU. Motley Fool newsletter services have recommended buying calls on SUPERVALU. 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.