Will These Numbers from Krispy Kreme Doughnuts Be Good Enough for You?

Updated

Krispy Kreme Doughnuts (NYS: KKD) is expected to report Q1 earnings around May 22. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Krispy Kreme Doughnuts's revenues will grow 7.3% and EPS will grow 37.5%.

The average estimate for revenue is $116.4 million. On the bottom line, the average EPS estimate is $0.11.


Revenue details
Last quarter, Krispy Kreme Doughnuts booked revenue of $118.1 million. GAAP reported sales were 16% higher than the prior-year quarter's $102.0 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, EPS came in at $0.07. GAAP EPS of $0.07 for Q4 were 97% lower than the prior-year quarter's $2.01 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 16.8%, 300 basis points better than the prior-year quarter. Operating margin was 7.2%, 190 basis points better than the prior-year quarter. Net margin was 4.0%, much worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $462.0 million. The average EPS estimate is $0.38.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 451 members out of 820 rating the stock outperform, and 369 members rating it underperform. Among 204 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 117 give Krispy Kreme Doughnuts a green thumbs-up, and 87 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 $12.50.

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The article Will These Numbers from Krispy Kreme Doughnuts Be Good Enough for You? 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. The Motley Fool has no position in any of the stocks mentioned. 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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