The 10-second takeaway
For the quarter ended Jan. 28 (Q4), Hibbett Sports met expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP earnings per share increased significantly.
Margins expanded across the board.
Hibbett Sports chalked up revenue of $190.7 million. The 15 analysts polled by S&P Capital IQ expected sales of $192.2 million on the same basis. GAAP reported sales were 10% higher than the prior-year quarter's $173.2 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 $0.59. The 16 earnings estimates compiled by S&P Capital IQ predicted $0.56 per share. GAAP EPS of $0.59 for Q4 were 34% higher than the prior-year quarter's $0.44 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 35.7%, 80 basis points better than the prior-year quarter. Operating margin was 13.1%, 200 basis points better than the prior-year quarter. Net margin was 8.3%, 110 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $222.5 million. On the bottom line, the average EPS estimate is $0.89.
Next year's average estimate for revenue is $808.3 million. The average EPS estimate is $2.48.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 101 members out of 126 rating the stock outperform, and 25 members rating it underperform. Among 48 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 41 give Hibbett Sports a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Hibbett Sports is outperform, with an average price target of $49.21.
Over the decades, small-cap stocks like Hibbett Sports 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 Hibbett Sports to My Watchlist.
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.