The 10-second takeaway
For the quarter ended March 31 (Q1), Tim Hortons missed estimates on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue was unchanged. Non-GAAP earnings per share contracted. GAAP earnings per share dropped.
Gross margins grew, operating margins increased, net margins shrank.
Tim Hortons chalked up revenue of $719.2 million. The 11 analysts polled by S&P Capital IQ predicted a top line of $736.1 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 came in at $0.50. The 17 earnings estimates compiled by S&P Capital IQ predicted $0.61 per share. Non-GAAP EPS of $0.50 for Q1 were 11% lower than the prior-year quarter's $0.56 per share. GAAP EPS of $0.55 for Q1 were 1.8% lower than the prior-year quarter's $0.56 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 23.5%, 10 basis points better than the prior-year quarter. Operating margin was 18.3%, 50 basis points better than the prior-year quarter. Net margin was 11.8%, 50 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $821.8 million. On the bottom line, the average EPS estimate is $0.75.
Next year's average estimate for revenue is $3.26 billion. The average EPS estimate is $2.93.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 386 members out of 416 rating the stock outperform, and 30 members rating it underperform. Among 105 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 100 give Tim Hortons a green thumbs-up, and five 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 $52.52.
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