Harris Teeter Supermarkets
The 10-second takeaway
For the quarter ended July 2 (Q3), Harris Teeter Supermarkets missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue increased slightly. Non-GAAP earnings per share grew. GAAP earnings per share grew significantly.
Margins expanded across the board.
Harris Teeter Supermarkets booked revenue of $1.19 billion. The two analysts polled by S&P Capital IQ looked for revenue of $1.23 billion on the same basis. GAAP reported sales were 2.9% higher than the prior-year quarter's $1.15 billion.
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 $0.65. The three earnings estimates compiled by S&P Capital IQ forecast $0.68 per share. Non-GAAP EPS of $0.65 for Q3 were 4.8% higher than the prior-year quarter's $0.62 per share. (The prior-year quarter included -$0.09 per share in earnings from discontinued operations.) GAAP EPS of $0.63 for Q3 were 97% higher than the prior-year quarter's $0.32 per share. (The prior-year quarter included -$0.09 per share in earnings from discontinued operations.)
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 30.5%, 30 basis points better than the prior-year quarter. Operating margin was 4.6%, 140 basis points better than the prior-year quarter. Net margin was 2.6%, 120 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.22 billion. On the bottom line, the average EPS estimate is $0.61.
Next year's average estimate for revenue is $4.77 billion. The average EPS estimate is $2.42.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 83 members out of 101 rating the stock outperform, and 18 members rating it underperform. Among 40 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 32 give Harris Teeter Supermarkets a green thumbs-up, and eight give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Harris Teeter Supermarkets is hold, with an average price target of $44.67.
Is Harris Teeter Supermarkets the right retailer for your portfolio? Learn how to maximize your investment income and "Secure Your Future With 9 Rock-Solid Dividend Stocks," including one above-average retailing powerhouse. Click here for instant access to this free report.
- Add Harris Teeter Supermarkets to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month. The Motley Fool has no position in any of the stocks mentioned. 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.