The 10-second takeaway
For the quarter ended June 15 (Q1), SUPERVALU met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly. Non-GAAP earnings per share contracted significantly. GAAP earnings per share grew significantly.
Gross margins contracted, operating margins dropped, net margins increased.
SUPERVALU logged revenue of $5.16 billion. The eight analysts polled by S&P Capital IQ foresaw a top line of $5.17 billion on the same basis. GAAP reported sales were 51% lower than the prior-year quarter's $10.59 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 eight earnings estimates compiled by S&P Capital IQ averaged $0.10 per share. Non-GAAP EPS of $0.14 for Q1 were 26% lower than the prior-year quarter's $0.19 per share. GAAP EPS of $0.33 for Q1 were 74% higher than the prior-year quarter's $0.19 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 13.8%, 820 basis points worse than the prior-year quarter. Operating margin was 1.6%, 40 basis points worse than the prior-year quarter. Net margin was 1.6%, 120 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $3.88 billion. On the bottom line, the average EPS estimate is $0.07.
Next year's average estimate for revenue is $16.98 billion. The average EPS estimate is $0.34.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 757 members out of 844 rating the stock outperform, and 87 members rating it underperform. Among 231 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 209 give SUPERVALU a green thumbs-up, and 22 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 $5.20.
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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.