Arcos Dorados Holdings
The 10-second takeaway
For the quarter ended June 30 (Q2), Arcos Dorados Holdings met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue improved slightly and GAAP earnings per share stayed the same.
Gross margins dropped, operating margins increased, and net margins dropped.
Arcos Dorados Holdings chalked up revenue of $904.2 million. The three analysts polled by S&P Capital IQ anticipated revenue of $917.7 million on the same basis. GAAP reported sales were 1.8% higher than the prior-year quarter's $888.5 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 $0.06. The two earnings estimates compiled by S&P Capital IQ averaged $0.07 per share. GAAP EPS of $0.06 were the same as the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 13.3%, 170 basis points worse than the prior-year quarter. Operating margin was 4.6%, 110 basis points better than the prior-year quarter. Net margin was 1.3%, 30 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.03 billion. On the bottom line, the average EPS estimate is $0.18.
Next year's average estimate for revenue is $3.96 billion. The average EPS estimate is $0.58.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 507 members out of 519 rating the stock outperform, and 12 members rating it underperform. Among 112 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 109 give Arcos Dorados Holdings a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Arcos Dorados Holdings is hold, with an average price target of $18.21.
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