The 10-second takeaway
For the quarter ended June 29 (Q2), Cabela's beat expectations on revenues and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. GAAP earnings per share expanded significantly.
Gross margins dropped, operating margins dropped, net margins expanded.
Cabela's logged revenue of $756.8 million. The 10 analysts polled by S&P Capital IQ expected a top line of $741.0 million on the same basis. GAAP reported sales were 21% higher than the prior-year quarter's $627.3 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 $0.62. The 12 earnings estimates compiled by S&P Capital IQ anticipated $0.61 per share. GAAP EPS of $0.62 for Q2 were 32% higher than the prior-year quarter's $0.47 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 45.4%, 30 basis points worse than the prior-year quarter. Operating margin was 9.0%, 20 basis points worse than the prior-year quarter. Net margin was 5.9%, 50 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $860.0 million. On the bottom line, the average EPS estimate is $0.71.
Next year's average estimate for revenue is $3.67 billion. The average EPS estimate is $3.43.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 708 members out of 781 rating the stock outperform, and 73 members rating it underperform. Among 281 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 275 give Cabela'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 Cabela's is outperform, with an average price target of $73.89.
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