The 10-second takeaway
For the quarter ended March 31 (Q1), Carmike Cinemas beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share increased.
Margins improved across the board.
Carmike Cinemas booked revenue of $130.8 million. The nine analysts polled by S&P Capital IQ predicted a top line of $126.9 million on the same basis. GAAP reported sales were 36% higher than the prior-year quarter's $96.2 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 $0.36. The five earnings estimates compiled by S&P Capital IQ averaged $0.11 per share. GAAP EPS were $0.25 for Q1 compared to -$1.44 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 22.2%, 1,110 basis points better than the prior-year quarter. Operating margin was 12.4%, 1,440 basis points better than the prior-year quarter. Net margin was 2.5%, 2,160 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $138.8 million. On the bottom line, the average EPS estimate is $0.38.
Next year's average estimate for revenue is $531.1 million. The average EPS estimate is $0.93.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 53 members out of 102 rating the stock outperform, and 49 members rating it underperform. Among 27 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 13 give Carmike Cinemas a green thumbs-up, and 14 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Carmike Cinemas is outperform, with an average price target of $13.39.
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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.