Finish Line Beats on the Top Line

Before you go, we thought you'd like these...
Before you go close icon

Finish Line (NAS: FINL) filed its 10-K on May 2. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 3 (Q4), Finish Line beat expectations on revenues and met expectations on earnings per share.

Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share grew significantly.


Gross margins dropped, operating margins increased, net margins expanded.

Revenue details
Finish Line booked revenue of $456.3 million. The 11 analysts polled by S&P Capital IQ anticipated revenue of $433.6 million on the same basis. GAAP reported sales were 19% higher than the prior-year quarter's $384.6 million.

anImage

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.81. The 12 earnings estimates compiled by S&P Capital IQ averaged $0.81 per share. GAAP EPS of $0.80 for Q4 were 27% higher than the prior-year quarter's $0.63 per share. (The prior-year quarter included $0.00 per share in earnings from discontinued operations.)

anImage

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 55.8%, 160 basis points worse than the prior-year quarter. Operating margin was 14.8%, 40 basis points better than the prior-year quarter. Net margin was 9.2%, 30 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $320.2 million. On the bottom line, the average EPS estimate is $0.22.

Next year's average estimate for revenue is $1.44 billion. The average EPS estimate is $1.62.

Investor sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 195 members out of 302 rating the stock outperform, and 107 members rating it underperform. Among 100 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 58 give Finish Line a green thumbs-up, and 42 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Finish Line is buy, with an average price target of $26.70.

If you're invested in retailers like Finish Line, you should check out the concept that is The Motley Fool's top stock for 2012. Its founder wrote the book on big box retailing, and it's growing in increasingly important international markets. Click here for instant access to this free report.

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.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners