The 10-second takeaway
For the quarter ended March 3 (Q4), Finish Line beat expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share grew significantly.
Gross margins dropped, operating margins increased, net margins expanded.
Finish Line booked revenue of $456.3 million. The 11 analysts polled by S&P Capital IQ anticipated revenue of $433.6 million on the same basis. GAAP reported sales were 19% higher than the prior-year quarter's $384.6 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 $0.81. The 12 earnings estimates compiled by S&P Capital IQ averaged $0.81 per share. GAAP EPS of $0.80 for Q4 were 27% higher than the prior-year quarter's $0.63 per share. (The prior-year quarter included $0.00 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 55.8%, 160 basis points worse than the prior-year quarter. Operating margin was 14.8%, 40 basis points better than the prior-year quarter. Net margin was 9.2%, 30 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $320.2 million. On the bottom line, the average EPS estimate is $0.22.
Next year's average estimate for revenue is $1.44 billion. The average EPS estimate is $1.62.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 195 members out of 302 rating the stock outperform, and 107 members rating it underperform. Among 100 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 58 give Finish Line a green thumbs-up, and 42 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Finish Line is buy, with an average price target of $26.70.
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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.