The Gory Details on Peet's Coffee & Tea's Double Miss
Peet's Coffee & Tea (NAS: PEET) reported earnings on May 1. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended April 1 (Q1), Peet's Coffee & Tea missed estimates on both revenue and earnings per share.
Compared to the prior-year quarter, revenue improved, while GAAP earnings per share shrank significantly.
Margins dropped across the board.
Peet's Coffee & Tea reported revenue of $94.8 million. The nine analysts polled by S&P Capital IQ hoped for a top line of $96.7 million on the same basis. GAAP reported sales were 7.1% higher than the prior-year quarter's $88.5 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 $0.25. The nine earnings estimates compiled by S&P Capital IQ predicted $0.31 per share. GAAP EPS of $0.25 for Q1 were 39% lower than the prior-year quarter's $0.41 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 17.5%, 450 basis points worse than the prior-year quarter. Operating margin was 5.6%, 430 basis points worse than the prior-year quarter. Net margin was 3.6%, 260 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $99 million. On the bottom line, the average EPS estimate is $0.41.
Next year's average estimate for revenue is $407.9 million. The average EPS estimate is $1.78.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 212 members rating the stock outperform and 85 members rating it underperform. Among 103 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 70 give Peet's Coffee & Tea a green thumbs-up, and 33 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Peet's Coffee & Tea is outperform, with an average price target of $71.33.
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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.
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