Tim Hortons
The 10-second takeaway
For the quarter ended July 1 (Q2), Tim Hortons beat slightly on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share grew.
Gross margins dropped, operating margins contracted, and net margins grew.
Revenue details
Tim Hortons booked revenue of $770.2 million. The 10 analysts polled by S&P Capital IQ expected revenue of $755.6 million on the same basis. GAAP reported sales were 5.3% higher than the prior-year quarter's $731.1 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
EPS came in at $0.68. The 15 earnings estimates compiled by S&P Capital IQ averaged $0.68 per share. GAAP EPS of $0.68 for Q2 were 13% higher than the prior-year quarter's $0.60 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Margin details
For the quarter, gross margin was 24.7%, 140 basis points worse than the prior-year quarter. Operating margin was 19.7%, 10 basis points worse than the prior-year quarter. Net margin was 13.8%, 20 basis points better than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $800.5 million. On the bottom line, the average EPS estimate is $0.73.
Next year's average estimate for revenue is $3.13 billion. The average EPS estimate is $2.71.
Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 373 members out of 405 rating the stock outperform, and 32 members rating it underperform. Among 99 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 92 give Tim Hortons a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Tim Hortons is hold, with an average price target of $55.68.
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