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.
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 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.
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.)
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.
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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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. 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.