The 10-second takeaway
For the quarter ended Oct. 28 (Q3), Teavana Holdings beat expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share contracted to a loss.
Margins shrank across the board.
Teavana Holdings recorded revenue of $46.0 million. The six analysts polled by S&P Capital IQ expected revenue of $44.7 million on the same basis. GAAP reported sales were 38% higher than the prior-year quarter's $33.4 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 -$0.03. The six earnings estimates compiled by S&P Capital IQ predicted -$0.01 per share. GAAP EPS were -$0.04 for Q3 versus $0.02 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 55.9%, 600 basis points worse than the prior-year quarter. Operating margin was -4.8%, 960 basis points worse than the prior-year quarter. Net margin was -3.1%, 590 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $94.6 million. On the bottom line, the average EPS estimate is $0.45.
Next year's average estimate for revenue is $239.2 million. The average EPS estimate is $0.57.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 56 members out of 82 rating the stock outperform, and 26 members rating it underperform. Among 24 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 16 give Teavana Holdings a green thumbs-up, and eight give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Teavana Holdings is hold, with an average price target of $17.60.
Is Teavana Holdings the right retailer for your portfolio? Learn how to maximize your investment income and "Secure Your Future With 9 Rock-Solid Dividend Stocks," including one above-average retailing powerhouse. Click here for instant access to this free report.
- Add Teavana Holdings to My Watchlist.