The 10-second takeaway
For the quarter ended Jan. 27 (Q4), Fresh Market missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly. GAAP earnings per share expanded.
Gross margins expanded, operating margins shrank, net margins contracted.
Fresh Market tallied revenue of $369.9 million. The 14 analysts polled by S&P Capital IQ predicted sales of $380.7 million on the same basis. GAAP reported sales were 15% higher than the prior-year quarter's $320.8 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 $0.43. The 14 earnings estimates compiled by S&P Capital IQ predicted $0.44 per share. GAAP EPS of $0.43 for Q4 were 13% higher than the prior-year quarter's $0.38 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 34.0%, 30 basis points better than the prior-year quarter. Operating margin was 8.3%, 90 basis points worse than the prior-year quarter. Net margin was 5.6%, 10 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $370.3 million. On the bottom line, the average EPS estimate is $0.44.
Next year's average estimate for revenue is $1.54 billion. The average EPS estimate is $1.55.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 132 members out of 148 rating the stock outperform, and 16 members rating it underperform. Among 41 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 34 give Fresh Market 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 Fresh Market is outperform, with an average price target of $57.60.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool recommends The Fresh Market. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.