The 10-second takeaway
For the quarter ended March 29 (Q2), Pantry beat expectations on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share.
Margins dropped across the board.
Pantry reported revenue of $2.06 billion. The three analysts polled by S&P Capital IQ predicted revenue of $1.93 billion on the same basis. GAAP reported sales were 22% higher than the prior-year quarter's $1.69 billion.
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 two earnings estimates compiled by S&P Capital IQ forecast -$0.38 per share. GAAP EPS were -$0.43 for Q2 compared to $0.00 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 9.2%, 300 basis points worse than the prior-year quarter. Operating margin was 0.5%, 80 basis points worse than the prior-year quarter. Net margin was -0.5%, 50 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $2.21 billion. On the bottom line, the average EPS estimate is $0.58.
Next year's average estimate for revenue is $8.54 billion. The average EPS estimate is $0.64.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 210 members out of 227 rating the stock outperform, and 17 members rating it underperform. Among 71 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 67 give Pantry a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Pantry is outperform, with an average price target of $15.00.
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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.