Pantry Beats on Both Top and Bottom Lines

Seth Jayson, The Motley Fool
Updated

Pantry (NAS: PTRY) reported earnings on May 8. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 29 (Q2), Pantry beat expectations on revenues and exceeded expectations on earnings per share.

Compared to the prior-year quarter, revenue expanded and GAAP earnings per share.


Margins dropped across the board.

Revenue details
Pantry reported revenue of $2.06 billion. The three analysts polled by S&P Capital IQ predicted revenue of $1.93 billion on the same basis. GAAP reported sales were 22% higher than the prior-year quarter's $1.69 billion.

anImage
anImage

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 -$0.30. The two earnings estimates compiled by S&P Capital IQ forecast -$0.38 per share. GAAP EPS were -$0.43 for Q2 compared to $0.00 per share for the prior-year quarter.

anImage
anImage

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 9.2%, 300 basis points worse than the prior-year quarter. Operating margin was 0.5%, 80 basis points worse than the prior-year quarter. Net margin was -0.5%, 50 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $2.21 billion. On the bottom line, the average EPS estimate is $0.58.

Next year's average estimate for revenue is $8.54 billion. The average EPS estimate is $0.64.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 210 members out of 227 rating the stock outperform, and 17 members rating it underperform. Among 71 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 67 give Pantry a green thumbs-up, and four give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Pantry is outperform, with an average price target of $15.00.

While many retailers continue to struggle in these tough economic time, a select few are changing the face of the business, and reaping outsized rewards. Is Pantry the right stock for you? Read "The Death of Wal-Mart: The Real Cash Kings Changing the Face of Retail" and decide. Click here for instant access to this free report.

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.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Advertisement