AFC Enterprises Beats on Both Top and Bottom Lines
AFC Enterprises (NAS: AFCE) reported earnings on May 23. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended April 15 (Q1), AFC Enterprises beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share improved significantly.
Margins expanded across the board.
AFC Enterprises reported revenue of $52.8 million. The two analysts polled by S&P Capital IQ predicted net sales of $49.5 million on the same basis. GAAP reported sales were 13% higher than the prior-year quarter's $46.8 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 $0.35. The three earnings estimates compiled by S&P Capital IQ anticipated $0.31 per share. GAAP EPS of $0.34 for Q1 were 21% higher than the prior-year quarter's $0.28 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 69.7%, 180 basis points better than the prior-year quarter. Operating margin was 26.9%, 130 basis points better than the prior-year quarter. Net margin was 15.7%, 30 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $38.2 million. On the bottom line, the average EPS estimate is $0.26.
Next year's average estimate for revenue is $170.6 million. The average EPS estimate is $1.14.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 56 members out of 68 rating the stock outperform, and 12 members rating it underperform. Among 17 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 16 give AFC Enterprises a green thumbs-up, and one gives it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on AFC Enterprises is buy, with an average price target of $20.67.
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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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