Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of outdoor-goods expert Cabela's
So what: What do investors want in a quarterly report? In short, they want better-than-expected earnings, better-than-expected revenue, and an optimistic view of the future. Cabela's fourth-quarter earnings release had all three.
For the fourth quarter, the hunting-and-fishing-gear maven delivered $1.06 in adjusted earnings per share on $984 million in revenue. On a YOY basis, revenue was up 5.4%, while adjusted EPS climbed 23%. Wall Street analysts were looking for just $0.99 in per-share profit and $963 million in sales.
Now what: As for the future, management has decided that business has been good enough and profitability has been strong enough that it's time to hit the gas pedal a bit harder. The company said that it's ramping up growth efforts, targeting a retail-square-footage increase of 10% in 2012 and another 11% to 13% in 2013. Cabela's is also rolling out a new store concept that will allow it enter some smaller markets.
Want to keep up to date on Cabela's? Add it to your Watchlist.