Winmark Misses on Revenue but Beats on EPS
Winmark (NAS: WINA) reported earnings on April 18. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), Winmark missed estimates on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share increased significantly.
Margins grew across the board.
Winmark recorded revenue of $11.8 million. The one analyst polled by S&P Capital IQ expected to see revenue of $12.3 million on the same basis. GAAP reported sales were 6.6% higher than the prior-year quarter's $11.1 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 $0.67. The one earnings estimate compiled by S&P Capital IQ predicted $0.58 per share. GAAP EPS of $0.67 for Q1 were 16% higher than the prior-year quarter's $0.58 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 92.8%, 220 basis points better than the prior-year quarter. Operating margin was 49.4%, 250 basis points better than the prior-year quarter. Net margin was 29.7%, 240 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $12.2 million. On the bottom line, the average EPS estimate is $0.64.
Next year's average estimate for revenue is $53.1 million. The average EPS estimate is $2.78.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 27 members out of 41 rating the stock outperform, and 14 members rating it underperform. Among 17 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), nine give Winmark a green thumbs-up, and eight give it a red thumbs-down.
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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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