Krispy Kreme Doughnuts Increases Sales but Misses Revenue Estimate
Krispy Kreme Doughnuts (NYS: KKD) reported earnings on May 21. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended April 29 (Q1), Krispy Kreme Doughnuts missed estimates on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share dropped significantly.
Gross margins increased, operating margins increased, net margins shrank.
Krispy Kreme Doughnuts tallied revenue of $108.5 million. The five analysts polled by S&P Capital IQ expected revenue of $112.7 million on the same basis. GAAP reported sales were 3.7% higher than the prior-year quarter's $104.6 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 $0.08. The four earnings estimates compiled by S&P Capital IQ predicted $0.08 per share. GAAP EPS of $0.08 for Q1 were 38% lower than the prior-year quarter's $0.13 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 18.3%, 150 basis points better than the prior-year quarter. Operating margin was 10.0%, 40 basis points better than the prior-year quarter. Net margin was 5.6%, 320 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $106.3 million. On the bottom line, the average EPS estimate is $0.05.
Next year's average estimate for revenue is $442.7 million. The average EPS estimate is $0.24.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 428 members out of 804 rating the stock outperform, and 376 members rating it underperform. Among 219 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 100 give Krispy Kreme Doughnuts a green thumbs-up, and 119 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Krispy Kreme Doughnuts is outperform, with an average price target of $9.33.
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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.