The 10-second takeaway
For the quarter ended March 30 (Q1), Interline Brands met expectations on revenue and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP earnings per share increased.
Gross margin shrank, operating margin shrank, and net margin expanded.
Interline Brands chalked up revenue of $313.6 million. The four analysts polled by S&P Capital IQ expected net sales of $312.5 million on the same basis. GAAP reported sales were 5.4% higher than the prior-year quarter's $297.4 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 $0.23. The four earnings estimates compiled by S&P Capital IQ forecast $0.25 per share. GAAP EPS of $0.23 for Q1 were 15% higher than the prior-year quarter's $0.20 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 36.9%, 40 basis points worse than the prior-year quarter. Operating margin was 5.7%, 10 basis points worse than the prior-year quarter. Net margin was 2.4%, 10 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $331.1 million. On the bottom line, the average EPS estimate is $0.35.
Next year's average estimate for revenue is $1.30 billion. The average EPS estimate is $1.30.
The stock has a two-star rating (out of five) at Motley Fool CAPS. Among 17 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 13 give Interline Brands 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 Interline Brands is outperform, with an average price target of $25.00.
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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.