The 10-second takeaway
For the quarter ended Jan. 28 (Q4), Cost Plus met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew, and GAAP earnings per share improved significantly.
Margins improved across the board.
Cost Plus booked revenue of $364.3 million. The five analysts polled by S&P Capital IQ wanted to see revenue of $361.9 million on the same basis. GAAP reported sales were 6.7% higher than the prior-year quarter's $341.6 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 $1.56. The six earnings estimates compiled by S&P Capital IQ predicted $1.50 per share on the same basis. GAAP EPS of $1.55 for Q4 were 26% higher than the prior-year quarter's $1.23 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 34.3%, 120 basis points better than the prior-year quarter. Operating margin was 11.7%, 210 basis points better than the prior-year quarter. Net margin was 10.0%, 170 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $207.3 million. On the bottom line, the average EPS estimate is -$0.06.
Next year's average estimate for revenue is $1.02 billion. The average EPS estimate is $1.10.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 54 members rating the stock outperform and 58 members rating it underperform. Among 33 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 14 give Cost Plus a green thumbs-up, and 19 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Cost Plus is buy, with an average price target of $14.
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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. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.