The 10-second takeaway
For the quarter ended Dec. 23 (Q2), Unifi met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue expanded slightly and GAAP earnings per share grew.
Margins grew across the board.
Unifi tallied revenue of $172.1 million. The two analysts polled by S&P Capital IQ foresaw a top line of $172.8 million on the same basis. GAAP reported sales were 3.0% higher than the prior-year quarter's $167.1 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 $0.12. The two earnings estimates compiled by S&P Capital IQ forecast $0.23 per share. GAAP EPS were $0.12 for Q2 against -$0.38 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 9.7%, 320 basis points better than the prior-year quarter. Operating margin was 2.6%, 310 basis points better than the prior-year quarter. Net margin was 1.4%, 600 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $187.9 million. On the bottom line, the average EPS estimate is $0.25.
Next year's average estimate for revenue is $729.6 million. The average EPS estimate is $1.02.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 54 members out of 68 rating the stock outperform, and 14 members rating it underperform. Among 24 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 20 give Unifi 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 Unifi is buy, with an average price target of $17.00.
Looking for alternatives to Unifi? It takes more than great companies to build a fortune for the future. Learn the basic financial habits of millionaires next door and get focused stock ideas in our free report, "3 Stocks That Will Help You Retire Rich." Click here for instant access to this free report.
- Add Unifi to My Watchlist.
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 position in any of the stocks mentioned. 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