Finish Line Beats Estimates on Top Line

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Finish Line (NAS: FINL) reported earnings on Dec. 21. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ending Nov. 26 (Q3), Finish Line beat expectations on revenue and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue expanded, and earnings per share improved significantly.

Margins grew across the board.

Revenue details
Finish Line logged revenue of $332 million. The 10 analysts polled by S&P Capital IQ foresaw a top line of $321 million. Sales were 8.1% higher than the prior-year quarter's $301 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
Non-GAAP EPS came in at $0.39. The 11 earnings estimates compiled by S&P Capital IQ averaged $0.38 per share on the same basis. GAAP EPS of $0.11 for Q2 were 38% higher than the prior-year quarter's $0.08 per share.

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Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 32.3%, 90 basis points better than the prior-year quarter. Operating margin was 2.8%, 30 basis points better than the prior-year quarter. Net margin was 2%, 40 basis points better than the prior-year quarter.

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Source: S&P Capital IQ. Quarterly periods.

Looking ahead
What does the future hold?

Next quarter's average estimate for revenue is $273 million. On the bottom line, the average EPS estimate is $0.11.

Next year's average estimate for revenue is $1.3 billion. The average EPS estimate is $1.58.

Investor sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 181 members out of 290 rating the stock outperform, and 109 members rating it underperform. Among 100 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 52 give Finish Line a green thumbs-up, and 48 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Finish Line is to buy, with an average price target of $26.13.

At the time this article was published 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 ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. 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.

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