Monro Muffler Brake Increases Sales but Misses Revenue Estimates
Monro Muffler Brake (NAS: MNRO) reported earnings on Jan. 24. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 24 (Q3), Monro Muffler Brake missed slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved and earnings per share improved significantly.
Gross margins shrank, operating margins grew, and net margins increased.
Monro Muffler Brake reported revenue of $177 million. The seven analysts polled by S&P Capital IQ expected revenue of $180 million. Sales were 6.8% higher than the prior-year quarter's $166 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
EPS came in at $0.42. The six earnings estimates compiled by S&P Capital IQ forecast $0.40 per share. GAAP EPS of $0.42 for Q3 were 21% higher than the prior-year quarter's $0.35 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 38.4%, 70 basis points worse than the prior-year quarter. Operating margin was 12.8%, 140 basis points better than the prior-year quarter. Net margin was 7.7%, 100 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $175 million. On the bottom line, the average EPS estimate is $0.36.
Next year's average estimate for revenue is $694 million. The average EPS estimate is $1.71.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 72 members out of 82 rating the stock outperform, and 10 members rating it underperform. Among 26 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 24 give Monro Muffler Brake a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Monro Muffler Brake is outperform, with an average price target of $40.
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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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