Jack in the Box Hits Estimates in Solid Quarter

Seth Jayson, The Motley Fool
Updated

Jack in the Box (NAS: JACK) reported earnings on May 16. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended April 15 (Q2), Jack in the Box met expectations on revenues and met expectations on earnings per share.

Compared to the prior-year quarter, revenue was unchanged and GAAP earnings per share grew significantly.


Margins expanded across the board.

Revenue details
 Jack in the Box reported revenue of $506.6 million. The 10 analysts polled by S&P Capital IQ predicted revenue of $502.7 million on the same basis. GAAP reported sales were 0.3% higher than the prior-year quarter's $505.1 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 $0.27. The seven earnings estimates compiled by S&P Capital IQ averaged $0.27 per share. GAAP EPS of $0.48 for Q2 were 269% higher than the prior-year quarter's $0.13 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 16.3%, 240 basis points better than the prior-year quarter. Operating margin was 5.6%, 230 basis points better than the prior-year quarter. Net margin was 4.3%, 300 basis points better than the prior-year quarter.

Looking ahead
 Next quarter's average estimate for revenue is $507.0 million. On the bottom line, the average EPS estimate is $0.30.

Next year's average estimate for revenue is $2.18 billion. The average EPS estimate is $1.15.

Investor sentiment
 The stock has a three-star rating (out of five) at Motley Fool CAPS, with 327 members out of 359 rating the stock outperform, and 32 members rating it underperform. Among 125 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 116 give Jack in the Box a green thumbs-up, and nine give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Jack in the Box is hold, with an average price target of $24.45.

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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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