Will These Numbers from Krispy Kreme Doughnuts Be Good Enough for You?

Checking expectations

Seth Jayson
Seth Jayson
Mar 11, 2013 at 12:00AM
Other

Krispy Kreme Doughnuts (NYSE: KKD) is expected to report Q4 earnings on March 14. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Krispy Kreme Doughnuts's revenues will increase 14.2% and EPS will shrink -96.0%.

The average estimate for revenue is $116.5 million. On the bottom line, the average EPS estimate is $0.08.

Revenue details
Last quarter, Krispy Kreme Doughnuts logged revenue of $107.1 million. GAAP reported sales were 8.5% higher than the prior-year quarter's $98.7 million.

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

EPS details
Last quarter, EPS came in at $0.07. GAAP EPS of $0.07 were the same as the prior-year quarter.

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

Recent performance
For the preceding quarter, gross margin was 15.8%, 280 basis points better than the prior-year quarter. Operating margin was 8.8%, 300 basis points better than the prior-year quarter. Net margin was 4.7%, 10 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $434.1 million. The average EPS estimate is $0.30.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 452 members out of 827 rating the stock outperform, and 375 members rating it underperform. Among 221 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 127 give Krispy Kreme Doughnuts a green thumbs-up, and 94 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Krispy Kreme Doughnuts is outperform, with an average price target of $9.75.

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