The 10-second takeaway
For the quarter ended April 28 (Q1), Kirkland's met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share dropped significantly.
Margins dropped across the board.
Kirkland's logged revenue of $97.8 million. The one analyst polled by S&P Capital IQ hoped for net sales of $97.8 million on the same basis. GAAP reported sales were 3.6% higher than the prior-year quarter's $94.4 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 $0.10. The three earnings estimates compiled by S&P Capital IQ predicted $0.10 per share. GAAP EPS of $0.10 for Q1 were 33% lower than the prior-year quarter's $0.15 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 39.3%, 100 basis points worse than the prior-year quarter. Operating margin was 3.2%, 230 basis points worse than the prior-year quarter. Net margin was 2.0%, 140 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $94.4 million. On the bottom line, the average EPS estimate is -$0.09.
Next year's average estimate for revenue is $465.2 million. The average EPS estimate is $0.92.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 102 members rating the stock outperform and 19 members rating it underperform. Among 27 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 23 give Kirkland's 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 Kirkland's is outperform, with an average price target of $20.50.
Over the decades, small-cap stocks like Kirkland's have provided market-beating returns, provided they're value priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add Kirkland's to My Watchlist.