Arcos Dorados Holdings
The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Arcos Dorados Holdings missed estimates on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank slightly and GAAP earnings per share increased significantly.
Gross margins contracted, operating margins shrank, net margins expanded.
Arcos Dorados Holdings logged revenue of $961.9 million. The four analysts polled by S&P Capital IQ looked for revenue of $1.02 billion on the same basis. GAAP reported sales were 2.2% lower than the prior-year quarter's $984.0 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 $0.16. The four earnings estimates compiled by S&P Capital IQ forecast $0.16 per share. GAAP EPS of $0.16 for Q3 were 78% higher than the prior-year quarter's $0.09 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 14.9%, 190 basis points worse than the prior-year quarter. Operating margin was 6.2%, 130 basis points worse than the prior-year quarter. Net margin was 3.4%, 140 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.06 billion. On the bottom line, the average EPS estimate is $0.24.
Next year's average estimate for revenue is $3.89 billion. The average EPS estimate is $0.53.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 572 members out of 583 rating the stock outperform, and 11 members rating it underperform. Among 123 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 121 give Arcos Dorados Holdings a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Arcos Dorados Holdings is outperform, with an average price target of $17.16.
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