Peet's Coffee & Tea
The 10-second takeaway
For the quarter ended April 1 (Q1), Peet's Coffee & Tea missed estimates on both revenue and earnings per share.
Compared to the prior-year quarter, revenue improved, while GAAP earnings per share shrank significantly.
Margins dropped across the board.
Peet's Coffee & Tea reported revenue of $94.8 million. The nine analysts polled by S&P Capital IQ hoped for a top line of $96.7 million on the same basis. GAAP reported sales were 7.1% higher than the prior-year quarter's $88.5 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 $0.25. The nine earnings estimates compiled by S&P Capital IQ predicted $0.31 per share. GAAP EPS of $0.25 for Q1 were 39% lower than the prior-year quarter's $0.41 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 17.5%, 450 basis points worse than the prior-year quarter. Operating margin was 5.6%, 430 basis points worse than the prior-year quarter. Net margin was 3.6%, 260 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $99 million. On the bottom line, the average EPS estimate is $0.41.
Next year's average estimate for revenue is $407.9 million. The average EPS estimate is $1.78.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 212 members rating the stock outperform and 85 members rating it underperform. Among 103 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 70 give Peet's Coffee & Tea a green thumbs-up, and 33 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Peet's Coffee & Tea is outperform, with an average price target of $71.33.
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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.