7 Days Group Holdings Limited
The 10-second takeaway
For the quarter ended March 31 (Q1), 7 Days Group Holdings Limited met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share increased significantly.
Margins expanded across the board.
7 Days Group Holdings Limited reported revenue of $86.5 million. The eight analysts polled by S&P Capital IQ anticipated sales of $86.2 million on the same basis. GAAP reported sales were 35% higher than the prior-year quarter's $64.2 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 $0.09. The four earnings estimates compiled by S&P Capital IQ forecast $0.06 per share. GAAP EPS of $0.06 for Q1 were 500% higher than the prior-year quarter's $0.01 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 38.2%, 110 basis points better than the prior-year quarter. Operating margin was 4.3%, 250 basis points better than the prior-year quarter. Net margin was 3.5%, 250 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $102.3 million. On the bottom line, the average EPS estimate is $0.22.
Next year's average estimate for revenue is $414.9 million. The average EPS estimate is $0.60.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on 7 Days Group Holdings Limited is outperform, with an average price target of $20.94.
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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.