Cabela's (NYSE: CAB) only managed to meet estimates last quarter, but investors hope that it will surpass expectations this quarter. The company will unveil its latest earnings on Thursday, July 28. Cabela's is a specialty retailer, and a direct marketer, of hunting, fishing, camping, and related outdoor merchandise.
What analysts say:
- Buy, sell, or hold?: The majority of analysts back Cabela's as a buy. But with 63.6% of analysts rating it a buy, Cabela's is still below the mean analyst rating of its nearest 10 competitors, which average 66.7% buys. Analysts like Cabela's better than competitor Hibbett Sports overall. Eleven out of 18 analysts rate Hibbett Sports a buy compared to seven of 11 for Cabela's. Analysts' rating of Cabela's has stayed constant from three months prior.
- Revenue Forecasts: On average, analysts predict $566.1 million in revenue this quarter. That would represent a rise of 7.6% from the year-ago quarter.
- Wall Street Earnings Expectations: The average analyst estimate is earnings of $0.27 per share. Estimates range from $0.20 to $0.31.
What our community says:
CAPS All-Stars are solidly backing the stock with 96.1% assigning it an "outperform" rating. The community at large concurs with the All-Stars with 90.2% giving it a rating of "outperform." Fools are keen on Cabela's and haven't been shy with their opinions lately, logging 299 posts in the past 30 days. Despite the majority sentiment in favor of Cabela's, the stock has a middling CAPS rating of three out of five stars.
Management:
Cabela's' profit has risen year over year by an average of more than twofold. Revenue has now gone up for three straight quarters.
Now let's look at how efficient management is at running the business. Traditionally, margins represent the efficiency with which companies capture portions of sales dollars. The following table shows gross, operating, and net margins over the past four quarters.
| Quarter | Q1 | Q4 | Q3 | Q2 |
| Gross Margin | 41.8% | 39.9% | 40.2% | 43% |
| Operating Margin | 5.3% | 11.1% | 5.7% | 5.8% |
| Net Margin | 3% | 7.1% | 3.1% | 3.4% |
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