Sears Holdings Corporation (SHLD): What You Should Know

Sears Holdings Corporation (NASDAQ:SHLD) reported earnings on May 23. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended May 4 (Q1), Sears Holdings Corporation (NASDAQ:SHLD) met expectations on revenues and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue dropped. Non-GAAP loss per share expanded. GAAP earnings per share dropped to a loss.

Margins contracted across the board.

Revenue details
Sears Holdings Corporation (NASDAQ:SHLD) reported revenue of $8.45 billion. The two analysts polled by S&P Capital IQ looked for a top line of $8.37 billion on the same basis. GAAP reported sales were 8.8% lower than the prior-year quarter’s $9.27 billion.

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 -$1.29. The three earnings estimates compiled by S&P Capital IQ predicted -$0.60 per share. Non-GAAP EPS were -$1.29 for Q1 versus -$0.31 per share for the prior-year quarter. GAAP EPS were -$2.63 for Q1 against $1.78 per share for the prior-year quarter.

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 25.5%, 220 basis points worse than the prior-year quarter. Operating margin was -3.0%, 250 basis points worse than the prior-year quarter. Net margin was -3.3%, 530 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter’s average estimate for revenue is $8.74 billion. On the bottom line, the average EPS estimate is -$0.67.

Next year’s average estimate for revenue is $36.45 billion. The average EPS estimate is -$2.43.

Investor sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 1,476 members out of 2,317 rating the stock outperform, and 841 members rating it underperform. Among 532 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 331 give Sears Holdings Corporation (NASDAQ:SHLD) a green thumbs-up, and 201 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Sears Holdings is underperform, with an average price target of $28.33.

The article Sears Holdings Goes Negative 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 of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.