The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Brasil Foods met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue dropped slightly and GAAP earnings per share dropped significantly.
Margins dropped across the board.
Brasil Foods chalked up revenue of $3.81 billion. The 13 analysts polled by S&P Capital IQ predicted a top line of $3.83 billion on the same basis. GAAP reported sales were 1.2% lower than the prior-year quarter's $3.85 billion.
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 $0.21. The four earnings estimates compiled by S&P Capital IQ predicted $0.41 per share on the same basis. GAAP EPS of $0.08 for Q4 were 68% lower than the prior-year quarter's $0.25 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 27.4%, 130 basis points worse than the prior-year quarter. Operating margin was 8.6%, 190 basis points worse than the prior-year quarter. Net margin was 1.7%, 390 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $3.67 billion. On the bottom line, the average EPS estimate is $0.37.
Next year's average estimate for revenue is $15.27 billion. The average EPS estimate is $1.57.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 233 members out of 247 rating the stock outperform, and 14 members rating it underperform. Among 64 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 61 give Brasil Foods a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Brasil Foods is outperform, with an average price target of $22.37.
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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. The Motley Fool has a disclosure policy.