The Gory Details of Arden Group's Earnings Miss

Seth Jayson, The Motley Fool
Updated

Arden Group (NAS: ARDNA) reported earnings on March 15. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Arden Group beat expectations on revenues and whiffed on earnings per share.

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

Margins contracted across the board.

Revenue details
Arden Group logged revenue of $114.5 million. The one analyst polled by S&P Capital IQ foresaw sales of $112.2 million on the same basis. GAAP reported sales were 4.1% higher than the prior-year quarter's $110.0 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
EPS came in at $1.41. The one earnings estimate compiled by S&P Capital IQ averaged $2.01 per share. GAAP EPS of $1.41 for Q4 were 19% lower than the prior-year quarter's $1.75 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 35.4%, 180 basis points worse than the prior-year quarter. Operating margin was 6.1%, 220 basis points worse than the prior-year quarter. Net margin was 3.8%, 120 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $104.7 million. On the bottom line, the average EPS estimate is $1.58.

Next year's average estimate for revenue is $428.1 million. The average EPS estimate is $6.21.

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At the time thisarticle was published Seth Jayson owned shares of the following at the time of publication: Arden Group. 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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