The 10-second takeaway
For the quarter ended April 28 (Q1), Fresh Market met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. GAAP earnings per share increased.
Gross margins expanded, operating margins were steady, net margins grew.
Fresh Market tallied revenue of $366.6 million. The 13 analysts polled by S&P Capital IQ expected revenue of $371.1 million on the same basis. GAAP reported sales were 13% higher than the prior-year quarter's $324.8 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 $0.46. The 12 earnings estimates compiled by S&P Capital IQ anticipated $0.44 per share. GAAP EPS of $0.46 for Q1 were 15% higher than the prior-year quarter's $0.40 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 35.3%, 60 basis points better than the prior-year quarter. Operating margin was 9.7%, much about the same as the prior-year quarter. Net margin was 6.0%, 10 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $357.2 million. On the bottom line, the average EPS estimate is $0.32.
Next year's average estimate for revenue is $1.54 billion. The average EPS estimate is $1.57.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 134 members out of 147 rating the stock outperform, and 13 members rating it underperform. Among 48 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 42 give Fresh Market 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 Fresh Market is outperform, with an average price target of $47.78.
Is Fresh Market the right retailer for your portfolio? Learn how to maximize your investment income and "Secure Your Future With 9 Rock-Solid Dividend Stocks," including one above-average retailing powerhouse. Click here for instant access to this free report.
- Add Fresh Market to My Watchlist.
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.