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SUPERVALU Meets on the Top Line, Misses Where it Counts

By Seth Jayson - Updated Apr 10, 2017 at 1:43PM

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Just the facts, Fool.

SUPERVALU (NYSE: SVU) reported earnings on April 24. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Feb. 23 (Q4), SUPERVALU met expectations on revenues and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue contracted significantly. Non-GAAP earnings per share contracted to a loss. GAAP loss per share grew.

Margins dropped across the board.

Revenue details
SUPERVALU booked revenue of $3.89 billion. The three analysts polled by S&P Capital IQ predicted a top line of $3.91 billion on the same basis. GAAP reported sales were 53% lower than the prior-year quarter's $8.23 billion.

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

EPS details
EPS came in at -$0.14. The seven earnings estimates compiled by S&P Capital IQ anticipated $0.08 per share. Non-GAAP EPS were -$0.14 for Q4 against $0.38 per share for the prior-year quarter. GAAP EPS were -$6.67 for Q4 against -$2.00 per share for the prior-year quarter.

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

Margin details
For the quarter, gross margin was 14.1%, much worse than the prior-year quarter. Operating margin was -5.4%, 830 basis points worse than the prior-year quarter. Net margin was -36.3%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $5.10 billion. On the bottom line, the average EPS estimate is $0.09.

Next year's average estimate for revenue is $16.96 billion. The average EPS estimate is $0.27.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 770 members out of 855 rating the stock outperform, and 85 members rating it underperform. Among 222 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 196 give SUPERVALU a green thumbs-up, and 26 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 $3.43.

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