The 10-second takeaway
For the quarter ended Feb. 23 (Q3), Marcus missed slightly on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share improved.
Margins improved across the board.
Marcus reported revenue of $92.1 million. The one analyst polled by S&P Capital IQ anticipated revenue of $93.7 million on the same basis. GAAP reported sales were 9.6% higher than the prior-year quarter's $84.0 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 $0.03. The one earnings estimate compiled by S&P Capital IQ predicted $0.00 per share. GAAP EPS were $0.03 for Q3, versus -$0.07 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 44.1%, 240 basis points better than the prior-year quarter. Operating margin was 4.4%, 430 basis points better than the prior-year quarter. Net margin was 0.8%, 320 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $106.6 million. On the bottom line, the average EPS estimate is $0.24.
Next year's average estimate for revenue is $412.7 million. The average EPS estimate is $0.71.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 37 members rating the stock outperform and two members rating it underperform. Among 10 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), all 10 give Marcus a green thumbs-up.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Marcus is buy, with an average price target of $15.00.
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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.