The 10-second takeaway
For the quarter ended April 28 (Q1), Cost Plus met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share grew to zero. The non-GAAP profit was a surprise, as analysts had predicted a loss.
Margins increased across the board.
Cost Plus tallied revenue of $214.6 million. The six analysts polled by S&P Capital IQ hoped for revenue of $213.1 million on the same basis. GAAP reported sales were 7.4% higher than the prior-year quarter's $199.7 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 $0.01. The six earnings estimates compiled by S&P Capital IQ predicted -$0.04 per share. GAAP EPS dropped to zero from the prior-year quarter's -$0.15.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 32.0%, 30 basis points better than the prior-year quarter. Operating margin was 1.4%, 130 basis points better than the prior-year quarter. Net margin was 0.0%, 170 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $212.1 million. On the bottom line, the average EPS estimate is -$0.20.
Next year's average estimate for revenue is $1.05 billion. The average EPS estimate is $1.20.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 69 members rating the stock outperform and 59 members rating it underperform. Among 36 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 17 give Cost Plus a green thumbs-up, and 19 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Cost Plus is hold, with an average price target of $20.83.
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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.