UniFirst Crushes Estimates
UniFirst (NYS: UNF) reported earnings on Jan. 5. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Nov. 26 (Q1), UniFirst beat expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue increased, and earnings per share grew.
Margins dropped across the board.
UniFirst reported revenue of $313 million. The seven analysts polled by S&P Capital IQ expected to see a top line of $296 million. Sales were 15% higher than the prior-year quarter's $273 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
EPS came in at $1.30. The seven earnings estimates compiled by S&P Capital IQ forecast $1.07 per share. GAAP EPS of $1.30 for Q1 were 8.3% higher than the prior-year quarter's $1.20 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 37.7%, 250 basis points worse than the prior-year quarter. Operating margin was 13.2%, 110 basis points worse than the prior-year quarter. Net margin was 8.2%, 50 basis points worse than the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods.
What does the future hold?
Next quarter's average estimate for revenue is $304 million. On the bottom line, the average EPS estimate is $0.89.
Next year's average estimate for revenue is $1.2 billion. The average EPS estimate is $4.05.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 74 members out of 83 rating the stock outperform, and nine members rating it underperform. Among 27 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 25 give UniFirst 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 UniFirst is outperform, with an average price target of $62.67.
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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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