Cabela's Shares Jumped: What You Need to Know

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

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 (NYSE: CAB  ) were high on life today, gaining as much as 14% in intraday trading after the company reported fourth-quarter results.

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.

Fool contributor Matt Koppenheffer does not have a financial interest in any of the companies mentioned. You can check out what Matt is keeping an eye on by visiting his CAPS portfolio, or you can follow Matt on Twitter @KoppTheFool or Facebook.

Motley Fool newsletter services have recommended buying shares of Cabela's. 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 Fool's disclosure policy prefers dividends over a sharp stick in the eye.

Read/Post Comments (0) | Recommend This Article (5)

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 Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1782812, ~/Articles/ArticleHandler.aspx, 10/27/2016 9:19:33 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 12 hours ago Sponsored by:
DOW 18,199.33 30.06 0.00%
S&P 500 2,139.43 -3.73 0.00%
NASD 5,250.27 -33.13 0.00%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/26/2016 4:02 PM
CAB $62.24 Down -0.39 +0.00%
Cabela's CAPS Rating: ****