The 10-second takeaway
For the quarter ended March 30 (Q1), Roundy's beat slightly on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew. GAAP earnings per share grew significantly.
Gross margins contracted, operating margins dropped, net margins increased.
Roundy's reported revenue of $983.5 million. The four analysts polled by S&P Capital IQ expected a top line of $971.3 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 four earnings estimates compiled by S&P Capital IQ predicted $0.21 per share. GAAP EPS of $0.19 for Q1 were 217% higher than the prior-year quarter's $0.06 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 26.7%, 70 basis points worse than the prior-year quarter. Operating margin was 2.7%, 60 basis points worse than the prior-year quarter. Net margin was 0.9%, 70 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.02 billion. On the bottom line, the average EPS estimate is $0.34.
Next year's average estimate for revenue is $4.00 billion. The average EPS estimate is $0.92.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 49 members out of 60 rating the stock outperform, and 11 members rating it underperform. Among 18 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 13 give Roundy's a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Roundy's is hold, with an average price target of $5.80.
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