The 10-second takeaway
For the quarter ended Jan. 1 (Q4), Caribou Coffee beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share grew.
Margins contracted across the board.
Caribou Coffee recorded revenue of $92.5 million. The five analysts polled by S&P Capital IQ expected a top line of $88.3 million on the same basis. GAAP reported sales were 19% higher than the prior-year quarter's $77.9 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 $0.14. The five earnings estimates compiled by S&P Capital IQ predicted $0.13 per share on the same basis. GAAP EPS of $0.24 for Q4 were 14% higher than the prior-year quarter's $0.21 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 16.7%, 310 basis points worse than the prior-year quarter. Operating margin was 5.3%, 70 basis points worse than the prior-year quarter. Net margin was 5.3%, 30 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $80.4 million. On the bottom line, the average EPS estimate is $0.06.
Next year's average estimate for revenue is $357.8 million. The average EPS estimate is $0.50.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 161 members out of 234 rating the stock outperform, and 73 members rating it underperform. Among 66 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 41 give Caribou Coffee a green thumbs-up, and 25 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Caribou Coffee is buy, with an average price target of $18.50.
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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.