The 10-second takeaway
For the quarter ended Dec. 27 (Q1), Pantry met expectations on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped slightly and GAAP loss per share expanded.
Gross margins contracted, operating margins increased, net margins were steady.
Pantry booked revenue of $1.92 billion. The five analysts polled by S&P Capital IQ hoped for a top line of $1.92 billion on the same basis. GAAP reported sales were 9.6% higher than the prior-year quarter's $1.75 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 -$0.08. The one earnings estimate compiled by S&P Capital IQ anticipated -$0.20 per share. GAAP EPS were -$0.14 for Q1 against -$0.13 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 10.2%, 110 basis points worse than the prior-year quarter. Operating margin was 1.1%, 20 basis points better than the prior-year quarter. Net margin was -0.2%, about the same as the prior-year quarter.
Next quarter's average estimate for revenue is $1.94 billion. On the bottom line, the average EPS estimate is -$0.33.
Next year's average estimate for revenue is $8.09 billion. The average EPS estimate is $0.29.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 203 members out of 220 rating the stock outperform, and 17 members rating it underperform. Among 72 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 68 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 $16.25.
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