Can Safeway Beat These Numbers?

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Safeway (NYS: SWY) is expected to report Q2 earnings around July 19. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Safeway's revenues will increase 1.5% and EPS will increase 17.1%.

The average estimate for revenue is $10.35 billion. On the bottom line, the average EPS estimate is $0.48.


Revenue details
Last quarter, Safeway recorded revenue of $10.00 billion. 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
Last quarter, non-GAAP EPS came in at $0.30. 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.

Recent performance
For the preceding quarter, gross margin was 26.8%, 70 basis points worse than the prior-year quarter. Operating margin was 1.9%, 30 basis points worse than the prior-year quarter. Net margin was 0.7%, 40 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $44.46 billion. The average EPS estimate is $1.95.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 339 members out of 414 rating the stock outperform, and 75 members rating it underperform. Among 116 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 95 give Safeway a green thumbs-up, and 21 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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The article Can Safeway Beat These Numbers? originally appeared on Fool.com.

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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