The 10-second takeaway
For the quarter ended Dec. 29 (Q1), Ingles Markets met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded slightly and GAAP earnings per share grew.
Gross margins grew, operating margins grew, net margins were steady.
Ingles Markets logged revenue of $932.8 million. The two analysts polled by S&P Capital IQ expected a top line of $943.0 million on the same basis. GAAP reported sales were 1.6% higher than the prior-year quarter's $918.2 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 $0.48. The one earnings estimate compiled by S&P Capital IQ anticipated $0.34 per share. GAAP EPS of $0.48 for Q1 were 12% higher than the prior-year quarter's $0.43 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 22.3%, 30 basis points better than the prior-year quarter. Operating margin was 3.6%, 30 basis points better than the prior-year quarter. Net margin was 1.2%, about the same as the prior-year quarter.
Next quarter's average estimate for revenue is $899.6 million. On the bottom line, the average EPS estimate is $0.27.
Next year's average estimate for revenue is $3.74 billion. The average EPS estimate is $1.77.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 94 members out of 102 rating the stock outperform, and eight members rating it underperform. Among 36 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 34 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 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.