The 10-second takeaway
For the quarter ended Oct. 27 (Q3), Sears Holdings beat slightly on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP loss per share increased.
Margins shrank across the board.
Sears Holdings notched revenue of $8.86 billion. The four analysts polled by S&P Capital IQ predicted a top line of $8.71 billion on the same basis. GAAP reported sales were 7.4% lower than the prior-year quarter's $9.57 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 -$1.99. The four earnings estimates compiled by S&P Capital IQ anticipated -$2.32 per share. GAAP EPS were -$4.70 for Q3 compared to -$3.95 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 25.4%, 30 basis points worse than the prior-year quarter. Operating margin was -5.1%, 80 basis points worse than the prior-year quarter. Net margin was -5.6%, 120 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $11.53 billion. On the bottom line, the average EPS estimate is $1.35.
Next year's average estimate for revenue is $39.15 billion. The average EPS estimate is -$1.99.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 1,473 members out of 2,333 rating the stock outperform, and 860 members rating it underperform. Among 586 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 344 give Sears Holdings a green thumbs-up, and 242 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Sears Holdings is underperform, with an average price target of $29.33.
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