Krispy Kreme Doughnuts
The 10-second takeaway
For the quarter ended April 29 (Q1), Krispy Kreme Doughnuts missed estimates on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share dropped significantly.
Gross margins increased, operating margins increased, net margins shrank.
Krispy Kreme Doughnuts tallied revenue of $108.5 million. The five analysts polled by S&P Capital IQ expected revenue of $112.7 million on the same basis. GAAP reported sales were 3.7% higher than the prior-year quarter's $104.6 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 $0.08. The four earnings estimates compiled by S&P Capital IQ predicted $0.08 per share. GAAP EPS of $0.08 for Q1 were 38% lower than the prior-year quarter's $0.13 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 18.3%, 150 basis points better than the prior-year quarter. Operating margin was 10.0%, 40 basis points better than the prior-year quarter. Net margin was 5.6%, 320 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $106.3 million. On the bottom line, the average EPS estimate is $0.05.
Next year's average estimate for revenue is $442.7 million. The average EPS estimate is $0.24.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 428 members out of 804 rating the stock outperform, and 376 members rating it underperform. Among 219 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 100 give Krispy Kreme Doughnuts a green thumbs-up, and 119 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Krispy Kreme Doughnuts is outperform, with an average price target of $9.33.
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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.