Saks Misses on Revenues but Beats on EPS
Saks (NYS: SKS) reported earnings on May 15. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended April 28 (Q1), Saks missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share increased.
Gross margins increased, operating margins were steady, net margins improved.
Saks notched revenue of $753.6 million. The two analysts polled by S&P Capital IQ foresaw sales of $770.3 million on the same basis. GAAP reported sales were 3.8% higher than the prior-year quarter's $726.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.19. The eight earnings estimates compiled by S&P Capital IQ predicted $0.18 per share. GAAP EPS of $0.18 for Q1 were 13% higher than the prior-year quarter's $0.16 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 44.4%, 30 basis points better than the prior-year quarter. Operating margin was 8.7%, about the same as the prior-year quarter. Net margin was 4.3%, 40 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $703.8 million. On the bottom line, the average EPS estimate is -$0.07.
Next year's average estimate for revenue is $3.22 billion. The average EPS estimate is $0.48.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 250 members out of 334 rating the stock outperform, and 84 members rating it underperform. Among 94 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 72 give Saks a green thumbs-up, and 22 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Saks is hold, with an average price target of $11.77.
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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.