The 10-second takeaway
For the quarter ended Sep. 30 (Q4), Ralcorp Holdings missed estimates on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP loss per share dropped.
Gross margins were steady, operating margins dropped, net margins expanded.
Ralcorp Holdings tallied revenue of $1.07 billion. The 11 analysts polled by S&P Capital IQ expected net sales of $1.10 billion on the same basis. GAAP reported sales were 7.8% higher than the prior-year quarter's $990.4 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 $0.71. The 13 earnings estimates compiled by S&P Capital IQ averaged $0.86 per share. GAAP EPS were -$0.80 for Q4 compared to -$7.72 per share for 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 19.4%, about the same as the prior-year quarter. Operating margin was 5.0%, 260 basis points worse than the prior-year quarter. Net margin was -4.1%, 3,870 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.18 billion. On the bottom line, the average EPS estimate is $1.09.
Next year's average estimate for revenue is $4.44 billion. The average EPS estimate is $3.90.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 136 members out of 147 rating the stock outperform, and 11 members rating it underperform. Among 53 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 52 give Ralcorp Holdings a green thumbs-up, and one give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Ralcorp Holdings is outperform, with an average price target of $76.50.
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