The Gory Details of Arden Group's Earnings Miss

Arden Group (Nasdaq: ARDNA  ) reported earnings on March 11. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 29 (Q4), Arden Group beat expectations on revenues and whiffed on earnings per share.

Compared to the prior-year quarter, revenue expanded. Non-GAAP earnings per share contracted. GAAP earnings per share grew significantly.

Gross margins shrank, operating margins expanded, net margins expanded.

Revenue details
Arden Group recorded revenue of $114.5 million. The one analyst polled by S&P Capital IQ looked for sales of $112.2 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.

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 $1.41. The one earnings estimate compiled by S&P Capital IQ averaged $2.01 per share. Non-GAAP EPS of $1.41 for Q4 were 15% lower than the prior-year quarter's $1.65 per share. GAAP EPS of $1.96 for Q4 were 39% higher than the prior-year quarter's $1.41 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 37.1%, much worse than the prior-year quarter. Operating margin was 8.5%, 240 basis points better than the prior-year quarter. Net margin was 5.2%, 140 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 98 members out of 103 rating the stock outperform, and five members rating it underperform. Among 37 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 33 give Arden Group a green thumbs-up, and four give it a red thumbs-down.

Is Arden Group the right retailer for your portfolio? Learn how to maximize your investment income and "Secure Your Future With 9 Rock-Solid Dividend Stocks," including one above-average retailing powerhouse. Click here for instant access to this free report.

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 has no position in any of the stocks mentioned. 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.


Read/Post Comments (1) | Recommend This Article (0)

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.

  • Report this Comment On March 12, 2013, at 1:52 PM, stevedean wrote:

    Earnings miss???

    GAAP operating income was up 41%. On an apples-to-apples basis (adding back the bonus for ratification of labor agreement in Q4 of 2011 and equalizing the stock-based comp expense in each quarter), operating income was up 32%.

    Also, I don't know where you pulled your adjusted EPS figure from. The Company earned $1.97 and I see no unusual items that would require a downward adjustment.

    You have to read the releases and check over the computer-generated figures before publishing these pieces with their juicy headlines.

    Steve

Add your comment.

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: 2307908, ~/Articles/ArticleHandler.aspx, 8/28/2014 5:06:54 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...


Advertisement