Monro Muffler Brake Increases Sales but Misses Revenue Estimates (MNRO)

Monro Muffler Brake Increases Sales but Misses Revenue Estimates

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Monro Muffler Brake (Nasdaq: MNRO ) reported earnings on Jan. 24. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 24 (Q3), Monro Muffler Brake missed slightly on revenues and beat expectations on earnings per share.

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

Gross margins shrank, operating margins grew, and net margins increased.

Revenue details
Monro Muffler Brake reported revenue of $177 million. The seven analysts polled by S&P Capital IQ expected revenue of $180 million. Sales were 6.8% higher than the prior-year quarter's $166 million.

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

EPS details
EPS came in at $0.42. The six earnings estimates compiled by S&P Capital IQ forecast $0.40 per share. GAAP EPS of $0.42 for Q3 were 21% higher than the prior-year quarter's $0.35 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 38.4%, 70 basis points worse than the prior-year quarter. Operating margin was 12.8%, 140 basis points better than the prior-year quarter. Net margin was 7.7%, 100 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $175 million. On the bottom line, the average EPS estimate is $0.36.

Next year's average estimate for revenue is $694 million. The average EPS estimate is $1.71.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 72 members out of 82 rating the stock outperform, and 10 members rating it underperform. Among 26 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 24 give Monro Muffler Brake a green thumbs-up, and two give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Monro Muffler Brake is outperform, with an average price target of $40.

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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.

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