Ralcorp Holdings
The 10-second takeaway
For the quarter ended March 31 (Q2), Ralcorp Holdings beat slightly on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share dropped significantly.
Margins contracted across the board.
Revenue details
Ralcorp Holdings reported revenue of $1.06 billion. The 10 analysts polled by S&P Capital IQ anticipated sales of $1.05 billion on the same basis. GAAP reported sales were 9.4% lower than the prior-year quarter's $1.17 billion.
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 $0.72. The 11 earnings estimates compiled by S&P Capital IQ predicted $0.84 per share. GAAP EPS of $0.47 for Q2 were 69% lower than the prior-year quarter's $1.50 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 21.0%, 800 basis points worse than the prior-year quarter. Operating margin was 7.2%, 680 basis points worse than the prior-year quarter. Net margin was 2.5%, 460 basis points worse than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $1.03 billion. On the bottom line, the average EPS estimate is $0.75.
Next year's average estimate for revenue is $4.46 billion. The average EPS estimate is $3.49.
Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 129 members out of 140 rating the stock outperform, and 11 members rating it underperform. Among 47 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 46 give Ralcorp Holdings a green thumbs-up, and one give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Ralcorp Holdings is outperform, with an average price target of $78.75.
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