Saks Incorporated Earnings: Here’s Why Shares are Down Now
Saks Incorporated (NYSE:SKS) had a loss and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 0.12%.
Saks Incorporated Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased to $-0.10 in the quarter versus EPS of $-0.05 in the year-earlier quarter.
Revenue: Rose 0.52% to $707.8 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Saks Incorporated reported adjusted EPS loss of $0.10 per share. By that measure, the company missed the mean analyst estimate of $-0.08. It missed the average revenue estimate of $732.55 million.
Quoting Management: Stephen I. Sadove, Chairman and Chief Executive Officer of the Company, noted, “While the second quarter was our fourteenth consecutive quarter of posting a comparable store sales increase, our sales growth was modestly below our expectations. This shortfall contributed to our second quarter year-over-year gross margin rate decline and SG&A expense deleverage.”
Key Stats (on next page)…
Revenue decreased 10.77% from $793.2 million in the previous quarter. EPS decreased to $-0.10 in the quarter versus EPS of $0.19 in the previous quarter.
Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.13 to a profit $0.12. For the current year, the average estimate has moved down from a profit of $0.43 to a profit of $0.41 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)