The 10-second takeaway
For the quarter ended Dec. 30 (Q4), CEC Entertainment met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue was unchanged. Non-GAAP earnings per share shrank significantly. GAAP earnings per share dropped to a loss.
Margins dropped across the board.
CEC Entertainment reported revenue of $177.8 million. The three analysts polled by S&P Capital IQ expected to see a top line of $179.9 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 four earnings estimates compiled by S&P Capital IQ forecast $0.09 per share. Non-GAAP EPS of $0.08 for Q4 were 62% lower than the prior-year quarter's $0.21 per share. GAAP EPS were -$0.04 for Q4 compared to $0.15 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 22.6%, 90 basis points worse than the prior-year quarter. Operating margin was 3.5%, 150 basis points worse than the prior-year quarter. Net margin was -0.3%, 180 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $255.2 million. On the bottom line, the average EPS estimate is $1.93.
Next year's average estimate for revenue is $823.5 million. The average EPS estimate is $2.88.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 72 members out of 93 rating the stock outperform, and 21 members rating it underperform. Among 44 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 33 give CEC Entertainment a green thumbs-up, and 11 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on CEC Entertainment is hold, with an average price target of $35.00.
Can your portfolio provide you with enough income to last through retirement? You'll need more than CEC Entertainment. Learn how to maximize your investment income and "Secure Your Future With 9 Rock-Solid Dividend Stocks." Click here for instant access to this free report.
- Add CEC Entertainment to My Watchlist.