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Unifi Misses on the Top and Bottom Lines

By Seth Jayson - Updated Apr 10, 2017 at 1:41PM

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Just the facts, Fool.

Unifi (NYSE: UFI) reported earnings on April 24. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 24 (Q3), Unifi missed estimates on revenues and missed estimates on earnings per share.

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

Margins shrank across the board.

Revenue details
Unifi tallied revenue of $168.2 million. The two analysts polled by S&P Capital IQ wanted to see revenue of $183.3 million on the same basis. GAAP reported sales were 6.0% lower than the prior-year quarter's $179.0 million.

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 $0.08. The two earnings estimates compiled by S&P Capital IQ forecast $0.13 per share. Non-GAAP EPS of $0.08 for Q3 were 79% lower than the prior-year quarter's $0.38 per share. GAAP EPS of $0.07 for Q3 were 81% lower than the prior-year quarter's $0.37 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 7.5%, 10 basis points worse than the prior-year quarter. Operating margin was 0.4%, 80 basis points worse than the prior-year quarter. Net margin was 0.8%, 340 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $190.5 million. On the bottom line, the average EPS estimate is $0.25.

Next year's average estimate for revenue is $718.9 million. The average EPS estimate is $0.65.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 58 members out of 73 rating the stock outperform, and 15 members rating it underperform. Among 26 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 23 give Unifi 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 Unifi is buy, with an average price target of $21.00.

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Stocks Mentioned

Unifi, Inc. Stock Quote
Unifi, Inc.
UFI
$15.45 (4.53%) $0.67

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