The 10-second takeaway
For the quarter ended March 31 (Q4), Nathan's Famous met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased. Non-GAAP earnings per share increased significantly. GAAP earnings per share grew significantly.
Margins grew across the board.
Nathan's Famous chalked up revenue of $15.0 million. The one analyst polled by S&P Capital IQ expected to see net sales of $15.2 million on the same basis. GAAP reported sales were 5.2% higher than the prior-year quarter's $14.1 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 $0.35. The one earnings estimate compiled by S&P Capital IQ predicted $0.25 per share. Non-GAAP EPS of $0.35 for Q4 were 46% higher than the prior-year quarter's $0.24 per share. GAAP EPS of $0.34 for Q4 were 48% higher than the prior-year quarter's $0.23 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 36.3%, 520 basis points better than the prior-year quarter. Operating margin was 16.1%, 900 basis points better than the prior-year quarter. Net margin was 10.5%, 290 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $21.0 million. On the bottom line, the average EPS estimate is $0.47.
Next year's average estimate for revenue is $75.6 million. The average EPS estimate is $1.76.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 147 members out of 157 rating the stock outperform, and 10 members rating it underperform. Among 54 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 53 give Nathan's Famous a green thumbs-up, and one give it a red thumbs-down.
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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 has no position in any of the stocks mentioned. 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.