Einstein Noah Restaurant Group Increases Sales but Misses Revenue Estimate

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Einstein Noah Restaurant Group (Nasdaq: BAGL) reported earnings on Aug. 3. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended July 3 (Q2), Einstein Noah Restaurant Group missed estimates on revenues and earnings per share.

Compared to the prior-year quarter, revenue increased slightly and GAAP earnings per share dropped.

Gross margins increased, operating margins shrank, and net margins dropped.

Revenue details
Einstein Noah Restaurant Group reported revenue of $106.0 million. The six analysts polled by S&P Capital IQ predicted sales of $109.3 million on the same basis. GAAP reported sales were 2.2% higher than the prior-year quarter's $103.7 million.

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 $0.19. The seven earnings estimates compiled by S&P Capital IQ anticipated $0.22 per share. GAAP EPS of $0.17 for Q2 were 5.6% lower than the prior-year quarter's $0.18 per share.

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 23.2%, 270 basis points better than the prior-year quarter. Operating margin was 5.6%, 20 basis points worse than the prior-year quarter. Net margin was 2.8%, 20 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $108.4 million. On the bottom line, the average EPS estimate is $0.23.

Next year's average estimate for revenue is $434.5 million. The average EPS estimate is $1.03.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 98 members out of 116 rating the stock outperform, and 18 members rating it underperform. Among 46 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 39 give Einstein Noah Restaurant Group a green thumbs-up, and seven give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Einstein Noah Restaurant Group is outperform, with an average price target of $20.67.

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