The 10-second takeaway
For the quarter ended Dec. 24 (Q1), Ingles Markets met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew, and GAAP earnings per share expanded significantly.
Gross margins contracted, operating margins improved, net margins expanded.
Ingles Markets logged revenue of $918.2 million. The one analyst polled by S&P Capital IQ wanted to see revenue of $911.8 million. Sales were 5.2% higher than the prior-year quarter's $872.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
EPS came in at $0.45. The one earnings estimate compiled by S&P Capital IQ forecast $0.44 per share. GAAP EPS of $0.84 for Q1 were 39% higher than the prior-year quarter's $0.31 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 22.0%, 20 basis points worse than the prior-year quarter. Operating margin was 3.3%, 30 basis points better than the prior-year quarter. Net margin was 1.2%, 30 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $890.9 million. On the bottom line, the average EPS estimate is $0.39.
Next year's average estimate for revenue is $3.62 billion. The average EPS estimate is $1.76.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Ingles Markets is buy.
If you're interested in retailers like Ingles Markets as investments, you should check out the retail concept that is The Motley Fool's top stock for 2012. Its founder wrote the book on big box retailing, and it's growing in increasingly important international markets. Click here for instant access to this free report.
- Add Ingles Markets to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.