Denny's Beats on Revenue, Matches Expectations on EPS

Just the facts, Fool.

Seth Jayson
Seth Jayson
May 1, 2013 at 12:00AM
Other

Denny's (Nasdaq: DENN) reported earnings on April 30. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 27 (Q1), Denny's beat expectations on revenues and met expectations on earnings per share.

Compared to the prior-year quarter, revenue dropped. GAAP earnings per share expanded.

Gross margins dropped, operating margins grew, net margins expanded.

Revenue details
Denny's notched revenue of $114.5 million. The six analysts polled by S&P Capital IQ expected to see revenue of $111.9 million on the same basis. GAAP reported sales were 9.7% lower than the prior-year quarter's $126.7 million.

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

EPS details
EPS came in at $0.07. The six earnings estimates compiled by S&P Capital IQ forecast $0.07 per share. GAAP EPS of $0.07 for Q1 were 17% higher than the prior-year quarter's $0.06 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 29.7%, 710 basis points worse than the prior-year quarter. Operating margin was 11.7%, 80 basis points better than the prior-year quarter. Net margin was 6.2%, 160 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $115.4 million. On the bottom line, the average EPS estimate is $0.08.

Next year's average estimate for revenue is $463.0 million. The average EPS estimate is $0.34.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 416 members out of 457 rating the stock outperform, and 41 members rating it underperform. Among 117 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 111 give Denny's a green thumbs-up, and six give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Denny's is outperform, with an average price target of $6.04.

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