AFC Enterprises Hits Estimates in Solid Quarter
AFC Enterprises (NAS: AFCE) reported earnings on Wednesday. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), AFC Enterprises met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue improved, and GAAP earnings per share increased significantly.
Gross margins increased, operating margins dropped, and net margins improved.
AFC Enterprises tallied revenue of $36.3 million. The one analyst polled by S&P Capital IQ expected sales of $36.5 million on the same basis. GAAP reported sales were 6.1% higher than the prior-year quarter's $34.2 million.
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 $0.24. The three earnings estimates compiled by S&P Capital IQ anticipated $0.24 per share on the same basis. GAAP EPS of $0.23 for Q4 were 28% higher than the prior-year quarter's $0.18 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 79.1%, 250 basis points better than the prior-year quarter. Operating margin was 23.1%, 120 basis points worse than the prior-year quarter. Net margin was 15.7%, 280 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $49.2 million. On the bottom line, the average EPS estimate is $0.31.
Next year's average estimate for revenue is $167.1 million. The average EPS estimate is $1.14.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 53 members rating the stock outperform and 14 members rating it underperform. Among 21 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 19 give AFC Enterprises 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 AFC Enterprises is buy, with an average price target of $19.33.
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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.