Charting Sears Holdings' Latest Earnings Release

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Sears Holdings (NAS: SHLD) reported earnings on May 17. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended April 28 (Q1), Sears Holdings met expectations on revenues and exceeded expectations on earnings per share.

Compared to the prior-year quarter, revenue shrank and GAAP earnings per share improved.


Margins expanded across the board.

Revenue details
Sears Holdings reported revenue of $9.27 billion. The three analysts polled by S&P Capital IQ looked for a top line of $9.26 billion on the same basis. GAAP reported sales were 2.8% lower than the prior-year quarter's $9.54 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 -$0.31. The four earnings estimates compiled by S&P Capital IQ forecast -$0.68 per share. GAAP EPS were $1.78 for Q1 versus -$1.58 per share for the prior-year quarter.

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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 27.7%, 100 basis points better than the prior-year quarter. Operating margin was -0.5%, 130 basis points better than the prior-year quarter. Net margin was 2.0%, 380 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $9.73 billion. On the bottom line, the average EPS estimate is -$1.04.

Next year's average estimate for revenue is $39.50 billion. The average EPS estimate is -$2.85.

Investor sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 1,478 members rating the stock outperform and 864 members rating it underperform. Among 566 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 330 give Sears Holdings a green thumbs-up, and 236 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Sears Holdings is hold, with an average price target of $27.75.

If you're invested in retailers like Sears Holdings, you should check out the concept that is The Motley Fool's top stock for 2012. Its founder wrote the book on big box retailing, and it's growing in increasingly important international markets. Click here for instant access to this free report.

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 here. He is 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 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.

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