Cheesecake Factory Beats Analyst Estimates on EPS
Cheesecake Factory (NAS: CAKE) reported earnings on July 25. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended July 3 (Q2), Cheesecake Factory met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share grew significantly.
Margins increased across the board.
Cheesecake Factory notched revenue of $454.7 million. The 22 analysts polled by S&P Capital IQ anticipated a top line of $456.9 million on the same basis. GAAP reported sales were 5.6% higher than the prior-year quarter's $430.7 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 $0.51. The 23 earnings estimates compiled by S&P Capital IQ anticipated $0.49 per share. GAAP EPS of $0.52 for Q2 were 24% higher than the prior-year quarter's $0.42 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 43.5%, 140 basis points better than the prior-year quarter. Operating margin was 9.0%, 80 basis points better than the prior-year quarter. Net margin was 6.2%, 50 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $459.1 million. On the bottom line, the average EPS estimate is $0.47.
Next year's average estimate for revenue is $1.83 billion. The average EPS estimate is $1.88.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 500 members out of 633 rating the stock outperform, and 133 members rating it underperform. Among 189 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 165 give Cheesecake Factory a green thumbs-up, and 24 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Cheesecake Factory is hold, with an average price target of $33.68.
Over the decades, small-cap stocks, like Cheesecake Factory have provided market-beating returns, provided they're value priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add Cheesecake Factory to My Watchlist.
The article Cheesecake Factory Beats Analyst Estimates on EPS originally appeared on Fool.com.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.