Jack in the Box
The 10-second takeaway
For the quarter ended Jan. 20 (Q1), Jack in the Box met expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank significantly. Non-GAAP earnings per share expanded significantly. GAAP earnings per share grew significantly.
Margins increased across the board.
Jack in the Box booked revenue of $465.5 million. The 14 analysts polled by S&P Capital IQ predicted sales of $471.5 million on the same basis. GAAP reported sales were 29% lower than the prior-year quarter's $652.7 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 $0.54. The 12 earnings estimates compiled by S&P Capital IQ predicted $0.39 per share. Non-GAAP EPS of $0.54 for Q1 were 116% higher than the prior-year quarter's $0.25 per share. GAAP EPS of $0.47 for Q1 were 74% higher than the prior-year quarter's $0.27 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 23.5%, 920 basis points better than the prior-year quarter. Operating margin was 9.1%, 520 basis points better than the prior-year quarter. Net margin was 4.4%, 260 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $370.7 million. On the bottom line, the average EPS estimate is $0.35.
Next year's average estimate for revenue is $1.58 billion. The average EPS estimate is $1.56.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 330 members out of 365 rating the stock outperform, and 35 members rating it underperform. Among 132 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 125 give Jack in the Box a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Jack in the Box is outperform, with an average price target of $31.00.
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