The 10-second takeaway
For the quarter ended July 1 (Q2), Cedar Fair crushed expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share improved significantly.
Margins improved across the board.
Cedar Fair reported revenue of $357.6 million. The three analysts polled by S&P Capital IQ wanted to see a top line of $296.6 million on the same basis. GAAP reported sales were 26% higher than the prior-year quarter's $284.5 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 $0.77. The two earnings estimates compiled by S&P Capital IQ predicted $0.40 per share. GAAP EPS of $0.65 for Q2 were much higher than the prior-year quarter's $0.08 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 50.0%, 350 basis points better than the prior-year quarter. Operating margin was 24.1%, 570 basis points better than the prior-year quarter. Net margin was 10.2%, 860 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $591.8 million. On the bottom line, the average EPS estimate is $3.25.
Next year's average estimate for revenue is $1.07 billion. The average EPS estimate is $2.32.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 356 members out of 435 rating the stock outperform, and 79 members rating it underperform. Among 116 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 101 give Cedar Fair a green thumbs-up, and 15 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Cedar Fair is buy, with an average price target of $34.00.
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