The 10-second takeaway
For the quarter ended June 22 (Q1), Spartan Stores beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased slightly. Non-GAAP earnings per share grew significantly. GAAP earnings per share shrank significantly.
Gross margins grew, operating margins dropped, net margins dropped.
Spartan Stores reported revenue of $612.4 million. The three analysts polled by S&P Capital IQ wanted to see revenue of $605.4 million on the same basis. GAAP reported sales were 1.4% higher than the prior-year quarter's $603.9 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
EPS came in at $0.30. The four earnings estimates compiled by S&P Capital IQ predicted $0.27 per share. Non-GAAP EPS of $0.30 for Q1 were 20% higher than the prior-year quarter's $0.25 per share. GAAP EPS of $0.21 for Q1 were 22% lower than the prior-year quarter's $0.27 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
For the quarter, gross margin was 20.5%, 30 basis points better than the prior-year quarter. Operating margin was 1.8%, 10 basis points worse than the prior-year quarter. Net margin was 0.8%, 20 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $626.0 million. On the bottom line, the average EPS estimate is $0.49.
Next year's average estimate for revenue is $2.65 billion. The average EPS estimate is $1.47.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 125 members out of 132 rating the stock outperform, and seven members rating it underperform. Among 45 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 44 give Spartan Stores a green thumbs-up, and one give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Spartan Stores is outperform, with an average price target of $20.50.
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