The 10-second takeaway
For the quarter ended Sep. 27 (Q4), Pantry beat slightly on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted and GAAP earnings per share dropped to a loss.
Margins dropped across the board.
Pantry chalked up revenue of $2.09 billion. The five analysts polled by S&P Capital IQ wanted to see revenue of $2.06 billion on the same basis. GAAP reported sales were 6.7% higher than the prior-year quarter's $1.96 billion.
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 -$0.09. The five earnings estimates compiled by S&P Capital IQ averaged $0.01 per share. GAAP EPS were -$0.21 for Q4 against $0.15 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 9.9%, 140 basis points worse than the prior-year quarter. Operating margin was 0.9%, 80 basis points worse than the prior-year quarter. Net margin was -0.2%, 40 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $2.03 billion. On the bottom line, the average EPS estimate is -$0.13.
Next year's average estimate for revenue is $8.23 billion. The average EPS estimate is $0.92.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 200 members out of 217 rating the stock outperform, and 17 members rating it underperform. Among 65 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 61 give Pantry a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Pantry is outperform, with an average price target of $16.33.
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