Tim Hortons
The 10-second takeaway
For the quarter ended April 1 (Q1), Tim Hortons beat expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share improved.
Margins dropped across the board.
Revenue details
Tim Hortons chalked up revenue of $722.8 million. The six analysts polled by S&P Capital IQ expected to see revenue of $705.5 million on the same basis. GAAP reported sales were 8.3% higher than the prior-year quarter's $667.3 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
EPS came in at $0.56. The 13 earnings estimates compiled by S&P Capital IQ predicted $0.59 per share. GAAP EPS of $0.56 for Q1 were 12% higher than the prior-year quarter's $0.50 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Margin details
For the quarter, gross margin was 23.4%, 110 basis points worse than the prior-year quarter. Operating margin was 17.8%, 50 basis points worse than the prior-year quarter. Net margin was 12.3%, 20 basis points worse than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $775.1 million. On the bottom line, the average EPS estimate is $0.70.
Next year's average estimate for revenue is $3.08 billion. The average EPS estimate is $2.72.
Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 373 members out of 403 rating the stock outperform, and 30 members rating it underperform. Among 104 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 97 give Tim Hortons a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Tim Hortons is hold, with an average price target of $56.04.
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