The 10-second takeaway
For the quarter ended March 31 (Q1), Tesco beat slightly on revenues and beat expectations on earnings per share.
Compared with the prior-year quarter, revenue improved significantly and GAAP earnings per share grew significantly.
Gross margins shrank, operating margins increased, net margins grew.
Tesco booked revenue of $152.4 million. The six analysts polled by S&P Capital IQ expected revenue of $150.2 million on the same basis. GAAP reported sales were 44% higher than the prior-year quarter's $105.6 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 $0.37. The seven earnings estimates compiled by S&P Capital IQ predicted $0.25 per share. GAAP EPS of $0.37 for Q1 were 185% higher than the prior-year quarter's $0.13 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 21.4%, 20 basis points worse than the prior-year quarter. Operating margin was 12.5%, 470 basis points better than the prior-year quarter. Net margin was 9.4%, 470 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $154.3 million. On the bottom line, the average EPS estimate is $0.28.
Next year's average estimate for revenue is $632.6 million. The average EPS estimate is $1.16.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 244 members out of 256 rating the stock outperform, and 12 members rating it underperform. Among 71 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 69 give Tesco a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Tesco is outperform, with an average price target of $21.29.
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