The 10-second takeaway
For the quarter ended June 15 (Q2), Nash Finch beat expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share dropped. GAAP earnings per share grew.
Gross margins expanded, operating margins dropped, net margins grew.
Nash Finch reported revenue of $1.20 billion. The one analyst polled by S&P Capital IQ expected to see revenue of $1.14 billion on the same basis. GAAP reported sales were 9.1% higher than the prior-year quarter's $1.10 billion.
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 $0.64. The two earnings estimates compiled by S&P Capital IQ predicted $0.49 per share. Non-GAAP EPS of $0.64 for Q2 were 7.2% lower than the prior-year quarter's $0.69 per share. GAAP EPS were $0.68 for Q2 compared to -$6.55 per share for the prior-year quarter.
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 8.3%, 30 basis points better than the prior-year quarter. Operating margin was 1.5%, 10 basis points worse than the prior-year quarter. Net margin was 0.7%, 840 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.48 billion. On the bottom line, the average EPS estimate is $0.88.
Next year's average estimate for revenue is $4.84 billion. The average EPS estimate is $1.96.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 53 members out of 63 rating the stock outperform, and 10 members rating it underperform. Among 21 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 17 give Nash Finch a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Nash Finch is hold, with an average price target of $24.00.
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