Nash Finch Beats on EPS but GAAP Results Lag

Seth Jayson, The Motley Fool
Updated

Nash Finch (NAS: NAFC) reported earnings on March 1. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Nash Finch beat slightly on revenue and beat expectations on earnings per share.

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

Margins dropped across the board.

Revenue details
Nash Finch recorded revenue of $1.14 billion. The two analysts polled by S&P Capital IQ expected sales of $1.12 billion on the same basis. GAAP reported sales were 0.9% lower than the prior-year quarter's $1.15 billion.

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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 $0.97. The three earnings estimates compiled by S&P Capital IQ averaged $0.82 per share on the same basis. GAAP EPS of $0.62 for Q4 were 52% lower than the prior-year quarter's $1.30 per share.

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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 7.7%, 50 basis points worse than the prior-year quarter. Operating margin was 2.1%, 20 basis points worse than the prior-year quarter. Net margin was 0.7%, 80 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.07 billion. On the bottom line, the average EPS estimate is $0.61.

Next year's average estimate for revenue is $4.72 billion. The average EPS estimate is $3.30.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 45 members out of 57 rating the stock outperform, and 12 members rating it underperform. Among 20 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 17 give Nash Finch a green thumbs-up, and three give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Nash Finch is outperform, with an average price target of $52.00.

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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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