Sara Lee Beats on EPS but GAAP Results Lag
Sara Lee (NYS: SLE) reported earnings today. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q2), Sara Lee met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank and GAAP earnings per share contracted significantly.
Margins contracted across the board.
Sara Lee logged revenue of $2.08 billion. The nine analysts polled by S&P Capital IQ expected revenue of $2.11 billion. Sales were 11% lower than the prior-year quarter's $2.35 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.27. The 13 earnings estimates compiled by S&P Capital IQ predicted $0.25 per share on the same basis. GAAP EPS of $0.78 for Q2 were 40% lower than the prior-year quarter's $1.29 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 33.4%, 50 basis points worse than the prior-year quarter. Operating margin was 9.6%, 100 basis points worse than the prior-year quarter. Net margin was 22.5%, 1,290 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.95 billion. On the bottom line, the average EPS estimate is $0.25.
Next year's average estimate for revenue is $8.12 billion. The average EPS estimate is $0.92.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Sara Lee is outperform, with an average price target of $19.50.
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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 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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