Golf Clap for Safeway

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Safeway (NYS: SWY) reported earnings on April 26. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 24 (Q1), Safeway met expectations on revenues and met expectations on earnings per share.

Compared with the prior-year quarter, revenue expanded slightly and GAAP earnings per share grew significantly.


Gross margins contracted, operating margins shrank, net margins increased.

Revenue details
Safeway chalked up revenue of $10.00 billion. The 16 analysts polled by S&P Capital IQ foresaw revenue of $10.06 billion on the same basis. GAAP reported sales were 2.4% higher than the prior-year quarter's $9.77 billion.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.30. The 18 earnings estimates compiled by S&P Capital IQ averaged $0.30 per share. GAAP EPS of $0.27 for Q1 were 286% higher than the prior-year quarter's $0.07 per share.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 26.8%, 70 basis points worse than the prior-year quarter. Operating margin was 1.9%, 40 basis points worse than the prior-year quarter. Net margin was 0.7%, 40 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $10.43 billion. On the bottom line, the average EPS estimate is $0.47.

Next year's average estimate for revenue is $44.58 billion. The average EPS estimate is $1.96.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 326 members out of 393 rating the stock outperform, and 67 members rating it underperform. Among 107 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 91 give Safeway a green thumbs-up, and 16 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Safeway is hold, with an average price target of $21.18.

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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings. He is the co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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.

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