The 10-second takeaway
For the quarter ended Dec. 31 (Q4), DineEquity met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly and GAAP earnings per share improved.
Margins expanded across the board.
DineEquity logged revenue of $242.2 million. The seven analysts polled by S&P Capital IQ hoped for a top line of $241.4 million on the same basis. GAAP reported sales were 19% lower than the prior-year quarter's $299.8 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 $0.81. The seven earnings estimates compiled by S&P Capital IQ anticipated $0.77 per share on the same basis. GAAP EPS were $1.51 for Q4 against -$3.33 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 49.7%, 1,490 basis points better than the prior-year quarter. Operating margin was 21.6%, 220 basis points better than the prior-year quarter. Net margin was 11.8%, 2,880 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $245.8 million. On the bottom line, the average EPS estimate is $1.15.
Next year's average estimate for revenue is $886.8 million. The average EPS estimate is $3.82.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 95 members out of 220 rating the stock outperform, and 125 members rating it underperform. Among 73 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 32 give DineEquity a green thumbs-up, and 41 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on DineEquity is outperform, with an average price target of $51.86.
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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.