Central European Distribution Whiffs on Earnings

Seth Jayson, The Motley Fool
Updated

Central European Distribution (NAS: CEDC) reported earnings on Feb. 29. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Central European Distribution missed estimates on revenue and whiffed on earnings per share.

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

Margins shrank across the board.

Revenue details
Central European Distribution recorded revenue of $280.1 million. The two analysts polled by S&P Capital IQ hoped for a top line of $293.3 million on the same basis. GAAP reported sales were 23% higher than the prior-year quarter's $228.4 million.

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

EPS details
Non-GAAP EPS came in at $0.11. The three earnings estimates compiled by S&P Capital IQ predicted $0.32 per share on the same basis. GAAP EPS were -$6.29 for Q4 compared to -$1.46 per share for the prior-year quarter.

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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 36.3%, 220 basis points worse than the prior-year quarter. Operating margin was 7.5%, 290 basis points worse than the prior-year quarter. Net margin was -162.9%, 11,770 basis points worse than the prior-year quarter.

Looking ahead
Next year's average estimate for revenue is $917.7 million. The average EPS estimate is $0.14.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 620 members out of 648 rating the stock outperform, and 28 members rating it underperform. Among 141 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 134 give Central European Distribution 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 Central European Distribution is underperform, with an average price target of $6.92.

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At the time thisarticle 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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