Fool Cheat Sheet: Pier 1 Imports Earnings (PIR)

Fool Cheat Sheet: Pier 1 Imports Earnings

Pier 1 Imports (NYSE: PIR ) reported earnings on Dec. 15. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Nov. 26 (Q3), Pier 1 Imports met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue grew, and earnings per share improved significantly.

Gross margins dropped, operating margins expanded, and net margins improved,

Revenue details
Pier 1 Imports logged revenue of $383 million. The eight analysts polled by S&P Capital IQ expected to see sales of $379 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
EPS came in at $0.21. The nine earnings estimates compiled by S&P Capital IQ predicted $0.20 per share. GAAP EPS of $0.21 for Q3 were 17% higher than the prior-year quarter's $0.18 per share.

Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 43.2%, 1,570 basis points worse than the prior-year quarter. Operating margin was 8.6%, 240 basis points better than the prior-year quarter. Net margin was 6%, 10 basis points better than the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods.

Looking ahead
What does the future hold?

Next quarter's average estimate for revenue is $462 million. On the bottom line, the average EPS estimate is $0.43. (There are eight revenue estimates and 10 EPS estimates.)

For the full year ending 2012, the average estimate for revenue is $1.5 billion. The average EPS estimate is $0.89. (There are nine revenue estimates and nine EPS estimates.)

Investor sentiment
The stock has a one-star rating out of five at Motley Fool CAPS, with 246 members out of 556 rating the stock outperform and 310 members rating it underperform. Among 161 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 47 give Pier 1 Imports a green thumbs-up, and 114 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Pier 1 Imports is outperform, with an average price target of $14.19.

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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. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment icon found on every comment.

Report this Comment On December 19, 2011, at 3:13 PM, betsyuva wrote:

What value is this 10-second takeaway providing?
PIR provides a quarterly performance update prior to (usually two weeks before) it's actual official earnings release. So the analyst update their forecasts for the quarter based on PIR's update and as a result each quarter it looks like PIR meets analyst eps estimates when they officially report.
As an example, on Dec 1 2011 PIR gave an update that they would most likely earn between .20-.21 per share in quarter. At the time the average analyst estimate was .18. In their update they also provided their revenue for the quarter and sss growth.
On the back of PIR's update, the analysts all updated their models and estimates so that when PIR actually reported earnings for the quarter of .21 they were then compared against the recently revised estimates of .20. So a .03 or 16% beat looks like a .01 or 5% beat.
PIR does this every quarter.
Also, with the margin graph, there's no mention at all here of the significant Tax benefit that PIR had in Q3 10, when they only had to pay 496K (2.3% of net income) in taxes, vs $12.4M (35% of net income) in Q3 11. If they had paid taxes at the same rate in each quarter, their net margin would have expanded from just over 2% to 6%.
The company is operating much better than your article portrays both in regards to their results vs expectations and their quarterly margins year over year.
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updated 1 day ago Sponsored by:
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PIR	$17.06		+0.15	+0.89%
Pier 1 Imports, In…		CAPS Rating:

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Fool Cheat Sheet: Pier 1 Imports Earnings

Comments from our Foolish Readers

Report this Comment On December 19, 2011, at 3:13 PM, betsyuva wrote:

Report this Comment On December 30, 2011, at 2:36 AM, katyjone wrote:

Report this Comment On December 30, 2011, at 2:37 AM, katyjone wrote:

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