Pier 1 Imports Beats on Both Top and Bottom Lines

Pier 1 Imports (NYS: PIR) reported earnings on Jan. 3. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Nov. 24 (Q3), Pier 1 Imports beat expectations on revenues and beat expectations on earnings per share.

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

Gross margins contracted, operating margins increased, net margins dropped.

Revenue details
Pier 1 Imports booked revenue of $425.0 million. The 10 analysts polled by S&P Capital IQ wanted to see revenue of $414.5 million on the same basis. GAAP reported sales were 11% higher than the prior-year quarter's $382.7 million.

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 $0.25. The 13 earnings estimates compiled by S&P Capital IQ forecast $0.24 per share. GAAP EPS of $0.22 for Q3 were 4.8% higher than the prior-year quarter's $0.21 per share.

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 60.2%, 30 basis points worse than the prior-year quarter. Operating margin was 9.1%, 50 basis points better than the prior-year quarter. Net margin was 5.6%, 40 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $546.2 million. On the bottom line, the average EPS estimate is $0.60.

Next year's average estimate for revenue is $1.70 billion. The average EPS estimate is $1.19.

Investor sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 272 members out of 575 rating the stock outperform, and 303 members rating it underperform. Among 141 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 64 give Pier 1 Imports a green thumbs-up, and 77 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Pier 1 Imports is outperform, with an average price target of $22.90.

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The article Pier 1 Imports Beats on Both Top and Bottom Lines 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. TMFDisclosureHere

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