The 10-second takeaway
For the quarter ended Dec. 29 (Q1), Pantry met expectations on revenue and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP loss per share contracted.
Gross margins contracted, operating margins improved, and net margins increased.
Pantry reported revenue of $1.96 billion. The four analysts polled by S&P Capital IQ wanted to see revenue of $1.97 billion. Sales were 8.8% higher than the prior-year quarter's $1.80 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at -$0.11. The four earnings estimates compiled by S&P Capital IQ predicted -$0.36 per share on the same basis. GAAP EPS were -$0.13 for Q1 against -$0.54 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 10.1%, 50 basis points worse than the prior-year quarter. Operating margin was 0.8%, 60 basis points better than the prior-year quarter. Net margin was -0.1%, 60 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.85 billion. On the bottom line, the average EPS estimate is -$0.21.
Next year's average estimate for revenue is $8.12 billion. The average EPS estimate is $0.60.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 207 members out of 225 rating the stock outperform, and 18 members rating it underperform. Among 73 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 70 give Pantry a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Pantry is outperform, with an average price target of $15.50.
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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.