Arcos Dorados Holdings
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Arcos Dorados Holdings missed slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share contracted. GAAP earnings per share dropped.
Margins shrank across the board.
Arcos Dorados Holdings reported revenue of $1.01 billion. The five analysts polled by S&P Capital IQ expected revenue of $1.03 billion on the same basis. GAAP reported sales were 5.3% higher than the prior-year quarter's $958.5 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 $0.23. The four earnings estimates compiled by S&P Capital IQ anticipated $0.21 per share. Non-GAAP EPS of $0.23 for Q4 were 4.2% lower than the prior-year quarter's $0.24 per share. GAAP EPS of $0.21 for Q4 were 4.5% lower than the prior-year quarter's $0.22 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 15.5%, 280 basis points worse than the prior-year quarter. Operating margin was 7.9%, 80 basis points worse than the prior-year quarter. Net margin was 4.4%, 40 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $971.1 million. On the bottom line, the average EPS estimate is $0.13.
Next year's average estimate for revenue is $4.22 billion. The average EPS estimate is $0.66.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 616 members out of 631 rating the stock outperform, and 15 members rating it underperform. Among 159 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 156 give Arcos Dorados Holdings a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Arcos Dorados Holdings is hold, with an average price target of $15.75.
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