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Does The Street Have SUPERVALU Figured Out?

By Seth Jayson - Updated Apr 10, 2017 at 1:55PM

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Checking expectations

SUPERVALU (NYSE: SVU) is expected to report Q4 earnings around April 10. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict SUPERVALU's revenues will wane -16.5% and EPS will drop -60.5%.

The average estimate for revenue is $6.87 billion. On the bottom line, the average EPS estimate is $0.15.

Revenue details
Last quarter, SUPERVALU chalked up revenue of $7.91 billion. GAAP reported sales were 5.0% lower than the prior-year quarter's $8.33 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $0.03. GAAP EPS were $0.08 for Q3 versus -$3.54 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 21.2%, 50 basis points worse than the prior-year quarter. Operating margin was 2.4%, much about the same as the prior-year quarter. Net margin was 0.2%, 920 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $32.53 billion. The average EPS estimate is $0.35.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 772 members out of 860 rating the stock outperform, and 88 members rating it underperform. Among 227 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 200 give SUPERVALU a green thumbs-up, and 27 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 $2.71.

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