Regis Earnings Preview

Investors never know what to expect for Regis (NYSE: RGS  ) , as it has wavered between topping and missing analysts estimates during the past fiscal year. The company will unveil its latest earnings on Monday. Regis is engaged primarily in owning, operating, and franchising hair and retail product salons.

What analysts say:

• Buy, sell, or hold?: Analysts think investors should stand pat on Regis with six of 10 analysts rating it hold. Analysts don't like Regis as much as competitor Core-Mark Holding overall. Three out of three analysts rate Core-Mark Holding a buy compared to three of 10 for Regis. Analysts still rate the stock a hold, but they are a bit more wary about it compared to three months ago.
• Revenue forecasts: On average, analysts predict $565.2 million in revenue this quarter. That would represent a decline of 2.3% from the year-ago quarter.
• Wall Street earnings expectations: The average analyst estimate is earnings of $0.28 per share. Estimates range from $0.24 to $0.30.

What our community says:
CAPS All-Stars are solidly behind the stock with 100% granting it an outperform rating. The community at large concurs with the All-Stars with 81.8% giving it a rating of outperform. Fools are keen on Regis, though the message boards have been quiet lately with only 35 posts in the past 30 days. Despite the majority sentiment in favor of Regis, the stock has a middling CAPS rating of three out of five stars.

Management:

Now let's look at how efficient management is at running the business. Traditionally, margins represent the efficiency with which companies capture portions of sales dollars. The following table shows gross, operating, and net margins over the past four quarters.

Quarter	Q4	Q3	Q2	Q1
Gross Margin	45.9%	45.2%	45.4%	46.3%
Operating Margin	1.2%	(10.2%)	4.0%	5.8%
Net Margin	(2.8%)	(4.4%)	2.5%	3.2%

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