On Nov. 1, Guitar Center
- EPS exceeded Wall Street's revised estimate, coming in at the high end of the guidance the company gave in early October.
- Strong performance, led by a 2.9% increase in same-store sales at its namesake Guitar Center stores, resulted in overall increase in revenues by 12.3% to $473 million.
- Margins were under pressure because of higher-than-expected expenses during the quarter.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Avg. Est. |
Q3 2006 |
Q3 2005 |
Change |
|
|---|---|---|---|---|
|
Sales |
$477 |
$473 |
$421 |
12.3% |
|
Net Profit |
-- |
$11 |
$14 |
(21.4%) |
|
EPS |
$0.35 |
$0.38 |
$0.51 |
(25.5%) |
|
Diluted Shares |
-- |
30 |
30 |
(0.1%) |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q3 2006 |
Q3 2005 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
28.19% |
29.41% |
(1.22) |
|
Operating Margin |
4.07% |
6.04% |
(1.97) |
|
Net Margin |
2.39% |
3.42% |
(1.03) |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
|
Assets |
Q3 2006 |
2005 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$10 |
$8 |
31.4% |
|
Accounts Rec. |
$44 |
$28 |
54.2% |
|
Inventory |
$558 |
$456 |
22.4% |
|
Liabilities |
Q3 2006 |
2005 |
Change |
|---|---|---|---|
|
Accounts Payable |
$111 |
$98 |
12.9% |
|
Long-Term Debt |
$0 |
$100 |
(100%) |
Learn the ways of the balance sheet.
Cash Flow Highlights
A typical chord progression goes I, IV, V. A typical financial statement progression goes Balance Sheet, Income Statement, Cash Flow Statement. The missing cash flow statement makes the music sound bad.
Find out why Fools always follow the money.
Related Companies:
-
Circuit
City
Stores
(NYSE:CC) -
Best Buy
(NYSE:BBY)
Related Foolishness:
- While My Guitar Center Gently Weeps
- Growth Fading at Guitar Center?
- Guitar Center's Hammering Solo
- The Fool's Look Ahead
Best Buy is a Motley Fool Stock Advisor selection. Sign up for afree report.
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