Tim Hortons
The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Tim Hortons beat slightly on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share grew.
Margins dropped across the board.
Revenue details
Tim Hortons booked revenue of $814.2 million. The nine analysts polled by S&P Capital IQ expected to see revenue of $801.8 million on the same basis. GAAP reported sales were 16% higher than the prior-year quarter's $699.8 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 $0.73. The 15 earnings estimates compiled by S&P Capital IQ predicted $0.73 per share. GAAP EPS of $0.69 for Q3 were 9.5% higher than the prior-year quarter's $0.63 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 24.6%, 50 basis points worse than the prior-year quarter. Operating margin was 19.7%, 100 basis points worse than the prior-year quarter. Net margin was 13.2%, 110 basis points worse than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $820.2 million. On the bottom line, the average EPS estimate is $0.72.
Next year's average estimate for revenue is $3.12 billion. The average EPS estimate is $2.70.
Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 376 members out of 408 rating the stock outperform, and 32 members rating it underperform. Among 107 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 99 give Tim Hortons a green thumbs-up, and eight 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 $54.57.
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