The 10-second takeaway
For the quarter ended March 31 (Q1), Cabela's met expectations on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share grew significantly.
Margins expanded across the board.
Cabela's chalked up revenue of $623.5 million. The 11 analysts polled by S&P Capital IQ expected to see a top line of $622.8 million on the same basis. GAAP reported sales were 6.3% higher than the prior-year quarter's $586.7 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 $0.40. The 11 earnings estimates compiled by S&P Capital IQ predicted $0.33 per share. GAAP EPS of $0.40 for Q1 were 60% higher 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 43.7%, 190 basis points better than the prior-year quarter. Operating margin was 7.5%, 220 basis points better than the prior-year quarter. Net margin was 4.6%, 160 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $605.7 million. On the bottom line, the average EPS estimate is $0.39.
Next year's average estimate for revenue is $3.03 billion. The average EPS estimate is $2.54.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 651 members out of 720 rating the stock outperform, and 69 members rating it underperform. Among 248 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 241 give Cabela's a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Cabela's is outperform, with an average price target of $39.67.
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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.