The 10-second takeaway
For the quarter ended March 31 (Q3), Farmer Brothers beat slightly on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. GAAP loss per share dropped.
Margins expanded across the board.
Farmer Brothers reported revenue of $126.3 million. The three analysts polled by S&P Capital IQ foresaw revenue of $124.9 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 -$0.09. The two earnings estimates compiled by S&P Capital IQ forecast $0.09 per share. GAAP EPS were -$0.09 for Q3 against -$0.35 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 38.5%, 300 basis points better than the prior-year quarter. Operating margin was -0.5%, 290 basis points better than the prior-year quarter. Net margin was -1.1%, 340 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $125.9 million. On the bottom line, the average EPS estimate is $0.13.
Next year's average estimate for revenue is $505.7 million. The average EPS estimate is -$0.08.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 31 members out of 43 rating the stock outperform, and 12 members rating it underperform. Among 12 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), seven give Farmer Brothers a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Farmer Brothers is buy, with an average price target of $16.75.
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