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.
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