Del Frisco's Restaurant Group Beats on Both Top and Bottom Lines

Just the facts, Fool.

Seth Jayson
Seth Jayson
Jul 19, 2013 at 12:00AM
Other

Del Frisco's Restaurant Group (Nasdaq: DFRG) reported earnings on July 16. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 11 (Q2), Del Frisco's Restaurant Group beat expectations on revenues and beat expectations on earnings per share.

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

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

Revenue details
Del Frisco's Restaurant Group logged revenue of $60.4 million. The seven analysts polled by S&P Capital IQ anticipated sales of $58.8 million on the same basis. GAAP reported sales were 19% higher than the prior-year quarter's $50.7 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 $0.20. The seven earnings estimates compiled by S&P Capital IQ predicted $0.19 per share. Non-GAAP EPS of $0.20 for Q2 were 20% lower than the prior-year quarter's $0.25 per share. GAAP EPS of $0.19 for Q2 were 5.0% lower than the prior-year quarter's $0.20 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 25.4%, 160 basis points worse than the prior-year quarter. Operating margin was 11.5%, 150 basis points worse than the prior-year quarter. Net margin was 7.3%, 20 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)


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Looking ahead
Next quarter's average estimate for revenue is $55.5 million. On the bottom line, the average EPS estimate is $0.11.

Next year's average estimate for revenue is $278.2 million. The average EPS estimate is $0.95.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 11 members out of 12 rating the stock outperform, and one members rating it underperform. Among six CAPS All-Star picks (recommendations by the highest-ranked CAPS members), six give Del Frisco's Restaurant Group a green thumbs-up, and give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Del Frisco's Restaurant Group is buy, with an average price target of $21.50.

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