On Sept. 20, Circuit City Stores
- In a high-volume, low-margin business like electronics retailing, 30 basis points of net margin improvement can make a huge difference in earnings. Case in point: Circuit City's net profit growth.
- Some nice working capital management allowed the company to create cash faster than it did last year. That's a good thing.
- Net profit of $10 million is a remarkably good showing for the summer quarter, historically speaking. Circuit City normally has a hard time turning a profit at all outside the critical holiday season, a.k.a. Q4.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Avg. Est. |
Q2 2007 |
Q2 2006 |
Change |
|
|---|---|---|---|---|
|
Sales |
$2,820 |
$2,839.0 |
$2,557.0 |
11.0% |
|
Net Profit |
-- |
$10.0 |
$1.3 |
644.9% |
|
EPS |
$0.05 |
$0.06 |
$0.01 |
500.0% |
|
Diluted Shares |
174.7 |
181.8 |
(3.9%) |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q2 2007 |
Q2 2006 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
23.80% |
23.84% |
(0.04) |
|
Operating Margin |
0.66% |
0.23% |
0.43 |
|
Net Margin |
0.35% |
0.05% |
0.30 |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
Assets | Q2 2007 | Q2 2006 | Change |
|---|---|---|---|
Cash + ST Invest. | $609.6 | $688.1 | (11.4%) |
Accounts Rec. | $303.1 | $184.6 | 64.2% |
Inventory | $1,849.5 | $1,664.9 | 11.1% |
Liabilities | Q2 2007 | Q2 2006 | Change |
|---|---|---|---|
Accounts Payable | $1,271.9 | $1,015.3 | 25.3% |
Long-Term Debt | $48.2 | $22.2 | 117.3% |
Learn the ways of the balance sheet.
Cash Flow Highlights
The company chose not to supply this vital slate of information. Curses!
Find out why Fools always follow the money.
Retail Checkup
Q2 2007 | Q2 2006 | Change* | |
|---|---|---|---|
Days in Inventory | 78.7 | 77.1 | 1.6 |
Days in Receivables | 8.2 | 6.8 | 1.4 |
Days Payables Outstanding | 52.0 | 47.6 | 4.5 |
Cash Conversion Cycle | 34.8 | 36.2 | (1.5) |
Read up on cash conversion metrics.
Related Companies:
- Best Buy
(NYSE:BBY) - Amazon.com
(NASDAQ:AMZN) - Conn's
(NASDAQ:CONN) - Tweeter Home Entertainment Group
(NASDAQ:TWTR) - RadioShack
(NYSE:RSH) - REX Stores
(NYSE:RSC)
Related Foolishness:
Best Buy and Amazon areMotley Fool Stock Advisorselections. Find out why the Gardner brothers like the entertainment superstores witha free 30-day trial subscription.
Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so checkFool.com for more of our in-depth discussion of what the numbers mean.
At the time of publication, Fool contributorAnders Bylund had positions in none of these companies. Fool rules are here.
