Regal Entertainment Group
The 10-second takeaway
For the quarter ended March 29 (Q1), Regal Entertainment Group beat expectations on both revenue and earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share expanded.
Gross margin was steady, and both operating margin and net margin expanded.
Regal Entertainment Group recorded revenue of $684.9 million. The 15 analysts polled by S&P Capital IQ foresaw revenue of $667.2 million on the same basis. GAAP-reported sales were 20% higher than the prior-year quarter's $570.9 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 $0.30. The 14 earnings estimates compiled by S&P Capital IQ averaged $0.15 per share. GAAP EPS were $0.30 for Q1 compared to -$0.15 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 62%, about the same as the prior-year quarter. Operating margin was 13.3%, 980 basis points better than the prior-year quarter. Net margin was 6.8%, 1,090 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $756.5 million. On the bottom line, the average EPS estimate is $0.25.
Next year's average estimate for revenue is $2.84 billion. The average EPS estimate is $0.75.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 147 members rating the stock outperform and 43 members rating it underperform. Among 60 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 47 give Regal Entertainment Group a green thumbs-up, and 13 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Regal Entertainment Group is outperform, with an average price target of $15.61.
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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.