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Regis Catches Analysts Sleeping Again

Regis (NYSE: RGS  ) reported earnings on Oct. 25. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Sep. 30 (Q1), Regis missed estimates on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue dropped and GAAP earnings per share expanded significantly.

Gross margins dropped, operating margins dropped, net margins expanded.

Revenue details
Regis reported revenue of $505.4 million. The five analysts polled by S&P Capital IQ anticipated net sales of $552.5 million on the same basis. GAAP reported sales were 11% lower than the prior-year quarter's $568.7 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 $0.08. The six earnings estimates compiled by S&P Capital IQ averaged $0.25 per share. GAAP EPS of $0.45 for Q1 were 200% higher than the prior-year quarter's $0.15 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 33.1%, 390 basis points worse than the prior-year quarter. Operating margin was 1.8%, 200 basis points worse than the prior-year quarter. Net margin was 5.6%, 410 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $515.2 million. On the bottom line, the average EPS estimate is $0.14.

Next year's average estimate for revenue is $2.09 billion. The average EPS estimate is $0.67.

Investor sentiment

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Regis is hold, with an average price target of $17.17.

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. The Motley Fool owns shares of Regis. Motley Fool newsletter services recommend Regis. 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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