Caribou Coffee Hits Estimates, but GAAP Results Lag Last Year's

Seth Jayson, The Motley Fool
Updated

Caribou Coffee (NAS: CBOU) reported earnings on May 3. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended April 1 (Q1), Caribou Coffee met expectations on revenues and met expectations on earnings per share.

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


Margins dropped across the board.

Revenue details
 Caribou Coffee chalked up revenue of $80.5 million. The five analysts polled by S&P Capital IQ expected to see a top line of $81.6 million on the same basis. GAAP reported sales were 11% higher than the prior-year quarter's $72.3 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 $0.06. The five earnings estimates compiled by S&P Capital IQ forecast $0.06 per share. GAAP EPS of $0.06 for Q1 were 95% lower than the prior-year quarter's $1.17 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 14.8%, 410 basis points worse than the prior-year quarter. Operating margin was 2.6%, 140 basis points worse than the prior-year quarter. Net margin was 1.5%, 3,180 basis points worse than the prior-year quarter.

Looking ahead
 Next quarter's average estimate for revenue is $86.3 million. On the bottom line, the average EPS estimate is $0.11.

Next year's average estimate for revenue is $356.4 million. The average EPS estimate is $0.50.

Investor sentiment
 The stock has a two-star rating (out of five) at Motley Fool CAPS, with 175 members out of 246 rating the stock outperform, and 72 members rating it underperform. Among 60 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 39 give Caribou Coffee a green thumbs-up, and 21 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Caribou Coffee is buy, with an average price target of $22.75.

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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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