The 10-second takeaway
For the quarter ended Oct. 28 (Q3), Fresh Market met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share expanded significantly.
Gross margins increased, operating margins increased, net margins dropped.
Fresh Market tallied revenue of $321.5 million. The 13 analysts polled by S&P Capital IQ predicted net sales of $318.7 million on the same basis. GAAP reported sales were 22% higher than the prior-year quarter's $263.3 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 $0.24. The 13 earnings estimates compiled by S&P Capital IQ forecast $0.26 per share. GAAP EPS of $0.23 for Q3 were 21% higher than the prior-year quarter's $0.19 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 33.1%, 110 basis points better than the prior-year quarter. Operating margin was 5.6%, 10 basis points better than the prior-year quarter. Net margin was 3.4%, 10 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $380.4 million. On the bottom line, the average EPS estimate is $0.45.
Next year's average estimate for revenue is $1.34 billion. The average EPS estimate is $1.36.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 128 members out of 152 rating the stock outperform, and 24 members rating it underperform. Among 45 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 31 give Fresh Market a green thumbs-up, and 14 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Fresh Market is outperform, with an average price target of $63.56.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of The Fresh Market. Motley Fool newsletter services recommend The Fresh Market. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.