How the Wheels Came Off J&J Snack Foods' Bus
J&J Snack Foods (NAS: JJSF) reported earnings on Jan. 23. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 24 (Q1), J&J Snack Foods met expectations on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue increased, and earnings per share dropped significantly.
Margins contracted across the board.
J&J Snack Foods notched revenue of $173 million. The three analysts polled by S&P Capital IQ predicted net sales of $174 million. Sales were 11% higher than the prior-year quarter's $156 million
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
EPS came in at $0.29. The three earnings estimates compiled by S&P Capital IQ predicted $0.40 per share. GAAP EPS of $0.29 for Q1 were 24% lower than the prior-year quarter's $0.38 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 26.9%, 270 basis points worse than the prior-year quarter. Operating margin was 4.9%, 220 basis points worse than the prior-year quarter. Net margin was 3.2%, 140 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $184 million. On the bottom line, the average EPS estimate is $0.49.
Next year's average estimate for revenue is $804 million. The average EPS estimate is $2.85.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 130 members out of 135 rating the stock outperform, and five members rating it underperform. Among 51 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 49 give J&J Snack Foods a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on J&J Snack Foods is hold, with an average price target of $56.33.
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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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