Town Sports International Holdings
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Town Sports International Holdings met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased slightly and GAAP earnings per share expanded significantly.
Gross margins dropped, operating margins increased, net margins expanded.
Town Sports International Holdings reported revenue of $115.8 million. The two analysts polled by S&P Capital IQ anticipated sales of $115.3 million on the same basis. GAAP reported sales were 1.5% higher than the prior-year quarter's $114.1 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.14. The two earnings estimates compiled by S&P Capital IQ predicted $0.09 per share. GAAP EPS of $0.14 for Q4 were 133% higher than the prior-year quarter's $0.06 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 24.6%, 550 basis points worse than the prior-year quarter. Operating margin was 8.3%, 30 basis points better than the prior-year quarter. Net margin was 2.8%, 170 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $122.7 million. On the bottom line, the average EPS estimate is $0.14.
Next year's average estimate for revenue is $490.3 million. The average EPS estimate is $0.68.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 61 members out of 71 rating the stock outperform, and 10 members rating it underperform. Among 20 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 18 give Town Sports International Holdings a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Town Sports International Holdings is outperform, with an average price target of $11.00.
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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.