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.
Over the decades, small-cap stocks like O'Charley's have produced market-beating returns, provided they're value-priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: 2 Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add O'Charley's to My Watchlist.