Arcos Dorados Holdings
The 10-second takeaway
For the quarter ended March 31 (Q1), Arcos Dorados Holdings beat slightly on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share dropped significantly. GAAP earnings per share contracted to a loss.
Margins dropped across the board.
Arcos Dorados Holdings booked revenue of $976.9 million. The four analysts polled by S&P Capital IQ expected to see sales of $962.0 million on the same basis. GAAP reported sales were 6.0% higher than the prior-year quarter's $921.6 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 $0.04. The three earnings estimates compiled by S&P Capital IQ predicted $0.05 per share. Non-GAAP EPS of $0.04 for Q1 were 67% lower than the prior-year quarter's $0.12 per share. GAAP EPS were -$0.03 for Q1 against $0.12 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 12.3%, 230 basis points worse than the prior-year quarter. Operating margin was 3.8%, 220 basis points worse than the prior-year quarter. Net margin was -0.7%, 350 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.00 billion. On the bottom line, the average EPS estimate is $0.10.
Next year's average estimate for revenue is $4.14 billion. The average EPS estimate is $0.57.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 622 members out of 637 rating the stock outperform, and 15 members rating it underperform. Among 149 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 147 give Arcos Dorados Holdings a green thumbs-up, and two 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 $14.71.
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