After beating estimates last quarter by $0.02, Cato
What analysts say:
- Buy, sell, or hold?: Analysts are very bullish on this stock, unanimously backing it as a buy. Analysts like Cato better than competitor bebe stores overall. Six out of eight analysts rate bebe stores a buy compared to one of one for Cato.
- Revenue forecasts:
- Wall Street earnings expectations: The average analyst estimate is earnings of $0.20 per share. Estimates range from $0.18 to $0.21.
What our community says:
CAPS All-Stars are solidly behind the stock with 88.2% assigning it an outperform rating. The community at large backs the All-Stars with 83.3% awarding it a rating of outperform. Fools are bullish on Cato, though the message boards have been quiet lately with only 52 posts in the past 30 days. Cato has a bullish CAPS rating of four out of five stars that is about on par with the Fool community assessment.
Management:
Cato's profit has risen year over year by an average of 40% over the past five quarters. A year-over-year revenue decrease last quarter snaps a streak of three consecutive quarters of revenue increases.
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 |
Q2 |
Q1 |
Q4 |
Q3 |
|
Gross Margin |
38.0% |
41.5% |
34.0% |
37.4% |
|
Operating Margin |
12.1% |
17.5% |
5.6% |
5.0% |
|
Net Margin |
7.7% |
11.3% |
3.5% |
3.4% |
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Earnings estimates provided by Zacks
