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Ingles Markets Beats on Both Top and Bottom Lines

By Seth Jayson – Updated Apr 7, 2017 at 11:32AM

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Just the facts, Fool.

Ingles Markets (Nasdaq: IMKTA) reported earnings on Dec. 7. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Sep. 29 (Q4), Ingles Markets beat expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue grew and GAAP earnings per share expanded significantly.

Gross margins contracted, operating margins grew, net margins grew.

Revenue details
Ingles Markets reported revenue of $991.8 million. The one analyst polled by S&P Capital IQ wanted to see sales of $914.1 million on the same basis. GAAP reported sales were 9.5% higher than the prior-year quarter's $905.8 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 $0.55. The one earnings estimate compiled by S&P Capital IQ predicted $0.47 per share. GAAP EPS of $0.55 for Q4 were 22% higher than the prior-year quarter's $0.45 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 22.2%, 10 basis points worse than the prior-year quarter. Operating margin was 3.5%, 10 basis points better than the prior-year quarter. Net margin was 1.3%, 10 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $941.4 million. On the bottom line, the average EPS estimate is $0.41.

Next year's average estimate for revenue is $3.75 billion. The average EPS estimate is $1.89.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 95 members out of 103 rating the stock outperform, and eight members rating it underperform. Among 35 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 33 give Ingles Markets a green thumbs-up, and two give it a red thumbs-down.

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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 has no positions in the stocks mentioned above. 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.

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Stocks Mentioned

Ingles Markets, Incorporated Stock Quote
Ingles Markets, Incorporated
IMKTA
$79.62 (-3.33%) $-2.74

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