Pier 1 Imports
The 10-second takeaway
For the quarter ended Nov. 24 (Q3), Pier 1 Imports beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share expanded.
Gross margins contracted, operating margins increased, net margins dropped.
Pier 1 Imports booked revenue of $425.0 million. The 10 analysts polled by S&P Capital IQ wanted to see revenue of $414.5 million on the same basis. GAAP reported sales were 11% higher than the prior-year quarter's $382.7 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 $0.25. The 13 earnings estimates compiled by S&P Capital IQ forecast $0.24 per share. GAAP EPS of $0.22 for Q3 were 4.8% higher than the prior-year quarter's $0.21 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 60.2%, 30 basis points worse than the prior-year quarter. Operating margin was 9.1%, 50 basis points better than the prior-year quarter. Net margin was 5.6%, 40 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $546.2 million. On the bottom line, the average EPS estimate is $0.60.
Next year's average estimate for revenue is $1.70 billion. The average EPS estimate is $1.19.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 272 members out of 575 rating the stock outperform, and 303 members rating it underperform. Among 141 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 64 give Pier 1 Imports a green thumbs-up, and 77 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Pier 1 Imports is outperform, with an average price target of $22.90.
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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. TMFDisclosureHere