The 10-second takeaway
For the quarter ended March 31 (Q1), Winmark missed estimates on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share increased significantly.
Margins grew across the board.
Winmark recorded revenue of $11.8 million. The one analyst polled by S&P Capital IQ expected to see revenue of $12.3 million on the same basis. GAAP reported sales were 6.6% higher than the prior-year quarter's $11.1 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 $0.67. The one earnings estimate compiled by S&P Capital IQ predicted $0.58 per share. GAAP EPS of $0.67 for Q1 were 16% higher than the prior-year quarter's $0.58 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 92.8%, 220 basis points better than the prior-year quarter. Operating margin was 49.4%, 250 basis points better than the prior-year quarter. Net margin was 29.7%, 240 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $12.2 million. On the bottom line, the average EPS estimate is $0.64.
Next year's average estimate for revenue is $53.1 million. The average EPS estimate is $2.78.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 27 members out of 41 rating the stock outperform, and 14 members rating it underperform. Among 17 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), nine give Winmark a green thumbs-up, and eight give it a red thumbs-down.
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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.