Ralcorp Holdings Increases Sales but Misses Estimates on Earnings
Ralcorp Holdings (NYS: RAH) reported earnings on Feb. 8. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q1), Ralcorp Holdings beat expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share shrank.
Margins dropped across the board.
Ralcorp Holdings tallied revenue of $1.38 billion. The 10 analysts polled by S&P Capital IQ expected revenue of $1.30 billion. GAAP sales were 18% higher than the prior-year quarter's $1.17 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $1.33. The 10 earnings estimates compiled by S&P Capital IQ forecast $1.34 per share on the same basis. GAAP EPS of $1.16 for Q1 were 9.4% lower than the prior-year quarter's $1.28 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 24.4%, 270 basis points worse than the prior-year quarter. Operating margin was 9.8%, 300 basis points worse than the prior-year quarter. Net margin was 4.7%, 140 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.09 billion. On the bottom line, the average EPS estimate is $0.99.
Next year's average estimate for revenue is $4.63 billion. The average EPS estimate is $4.11.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 130 members out of 140 rating the stock outperform, and 10 members rating it underperform. Among 49 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 49 give Ralcorp Holdings a green thumbs-up.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Ralcorp Holdings is outperform, with an average price target of $85.70.
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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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