Sears Holdings Earnings: Here’s Why Shares are Down Now

Sears Holdings Corporation (NASDAQ:SHLD) had a loss and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 8.90%.

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Sears Holdings Corporation Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $-1.29 in the quarter versus EPS of $-0.31 in the year-earlier quarter.

Revenue: Decreased 8.82% to $8.45 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Sears Holdings Corporation reported adjusted EPS loss of $1.29 per share. By that measure, the company missed the mean analyst estimate of $-0.6. It beat the average revenue estimate of $8.37 billion.

Quoting Management: “Our recent financial performance has not been acceptable, although we have seen some positive momentum as sales per member increased and our online business grew 20% in the quarter,” said Eddie Lampert, Sears Holdings’ Chairman and Chief Executive Officer. “During the quarter, we have accelerated our activity to transform Sears Holdings into a leading Integrated Retailer that fosters relationships with members through our SHOP YOUR WAY platform. We launched new mobile capabilities, like Member Assist, which allows our members to communicate directly with our consultative store sales staff remotely in a manner most convenient for our members. We believe that if we leverage technology to provide our members with the easiest, most seamless shopping experience possible, we will be successful.”

Key Stats (on next page)…

Revenue decreased 31.06% from $12.26 billion in the previous quarter. EPS decreased to $-1.29 in the quarter versus EPS of $1.12 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a loss of $1.24 to a loss $0.77. For the current year, the average estimate has moved up from a loss of $3.14 to a loss of $2.43 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)