Sears Rings Up Item to Beat

Long-time department store retailer Sears Holdings (SHLD) beat earnings estimates for its fiscal second quarter, ended July.  The company reported 50 cents per share, which although far from the $1.15 posted in the year-ago quarter, nevertheless represented an earnings surprise of 14 cents over the Zacks consensus estimate of 36 cents per share.

This, however, was a quarter in which a one-time item worth $62 million (related to an overturned jury verdict) helped escalate the retailer from what would have otherwise been an earnings miss.  This would not have looked good for a company that posted an atrocious 394% negative earnings surprise in its April quarter.

Most big-store retailers like Sears have been struggling of late.  With a slagging economy through 2008 so far and a questionable holiday season on the horizon, Sears Holdings currently registers a Zacks Rank #5 (Strong Sell).

Read the full analyst report on SHLD