The 10-second takeaway
For the quarter ended June 30 (Q2), DineEquity met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly. Non-GAAP earnings per share contracted. GAAP earnings per share dropped.
Margins expanded across the board.
DineEquity booked revenue of $158.1 million. The seven analysts polled by S&P Capital IQ expected revenue of $156.8 million on the same basis. GAAP reported sales were 31% lower than the prior-year quarter's $229.4 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
EPS came in at $1.02. The eight earnings estimates compiled by S&P Capital IQ averaged $0.91 per share. Non-GAAP EPS of $1.02 for Q2 were 3.8% lower than the prior-year quarter's $1.06 per share. GAAP EPS of $0.87 for Q2 were 1.1% lower than the prior-year quarter's $0.88 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
For the quarter, gross margin was 57.6%, much better than the prior-year quarter. Operating margin was 33.1%, 780 basis points better than the prior-year quarter. Net margin was 10.7%, 330 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $157.3 million. On the bottom line, the average EPS estimate is $0.92.
Next year's average estimate for revenue is $634.5 million. The average EPS estimate is $3.97.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 109 members out of 225 rating the stock outperform, and 116 members rating it underperform. Among 70 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 46 give DineEquity a green thumbs-up, and 24 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on DineEquity is hold, with an average price target of $79.50.
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