Winmark (Nasdaq: WINA) reported earnings on Feb. 27. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 29 (Q4), Winmark whiffed on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue contracted slightly. Non-GAAP earnings per share contracted significantly. GAAP earnings per share contracted significantly.

Gross margins expanded, operating margins grew, net margins dropped.

Revenue details
Winmark chalked up revenue of $13.1 million. The one analyst polled by S&P Capital IQ predicted sales of $15.4 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 details
EPS came in at $0.39. The one earnings estimate compiled by S&P Capital IQ averaged $0.55 per share. Non-GAAP EPS of $0.39 for Q4 were 54% lower than the prior-year quarter's $0.84 per share. GAAP EPS of $0.34 for Q4 were 58% lower than the prior-year quarter's $0.80 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 91.5%, 190 basis points better than the prior-year quarter. Operating margin was 53.1%, 90 basis points better than the prior-year quarter. Net margin was 13.4%, much worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $14.4 million. On the bottom line, the average EPS estimate is $0.77.

Next year's average estimate for revenue is $61.8 million. The average EPS estimate is $3.55.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 33 members out of 47 rating the stock outperform, and 14 members rating it underperform. Among 19 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 12 give Winmark a green thumbs-up, and seven give it a red thumbs-down.

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