Tesco Crushes Estimates
Tesco (NAS: TESO) reported earnings on Feb. 24. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Tesco beat expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share increased significantly.
Margins expanded across the board.
Tesco logged revenue of $163.1 million. The four analysts polled by S&P Capital IQ predicted revenue of $137.7 million on the same basis. GAAP reported sales were 43% higher than the prior-year quarter's $114.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.29. The six earnings estimates compiled by S&P Capital IQ predicted $0.19 per share. GAAP EPS of $0.29 for Q4 were much higher than the prior-year quarter's $0.03 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 21.3%, 130 basis points better than the prior-year quarter. Operating margin was 10.9%, 520 basis points better than the prior-year quarter. Net margin was 7.1%, 610 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $144.0 million. On the bottom line, the average EPS estimate is $0.25.
Next year's average estimate for revenue is $596.6 million. The average EPS estimate is $1.14.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 246 members out of 259 rating the stock outperform, and 13 members rating it underperform. Among 92 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 91 give Tesco a green thumbs-up, and one gives it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Tesco is outperform, with an average price target of $18.67.
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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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