The 10-second takeaway
For the quarter ended Dec. 25 (Q4), O'Charley's met expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted slightly and GAAP loss per share shrank.
Gross margins contracted, operating margins improved, and net margins improved.
O'Charley's reported revenue of $182.2 million. The three analysts polled by S&P Capital IQ expected a top line of $181.0 million on the same basis. GAAP reported sales were 0.7% lower than the prior-year quarter's $183.5 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at -$0.24. The three earnings estimates compiled by S&P Capital IQ predicted -$0.22 per share on the same basis. GAAP EPS were -$0.38 for Q4 versus -$0.97 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 10.6%, 60 basis points worse than the prior-year quarter. Operating margin was -2.2%, 20 basis points better than the prior-year quarter. Net margin was -4.4%, 680 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $270.2 million. On the bottom line, the average EPS estimate is $0.20.
Next year's average estimate for revenue is $846.0 million. The average EPS estimate is -$0.05.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 37 members out of 83 rating the stock outperform, and 46 members rating it underperform. Among 31 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 18 give O'Charley's a green thumbs-up, and 13 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on O'Charley's is hold, with an average price target of $8.38.
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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.