Krispy Kreme Doughnuts Crushes Earnings Estimates
Krispy Kreme Doughnuts (NYS: KKD) reported earnings on March 20. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Jan. 29 (Q4), Krispy Kreme Doughnuts met expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share grew.
Margins increased across the board.
Krispy Kreme Doughnuts tallied revenue of $102.0 million. The five analysts polled by S&P Capital IQ wanted to see revenue of $101.3 million on the same basis. GAAP reported sales were 11% higher than the prior-year quarter's $91.7 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 $2.01. The six earnings estimates compiled by S&P Capital IQ predicted $0.06 per share. GAAP EPS were $2.01 for Q4 compared to -$0.02 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 13.8%, 120 basis points better than the prior-year quarter. Operating margin was 5.3%, 150 basis points better than the prior-year quarter. Net margin was 140.8%, 14,240 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $111.1 million. On the bottom line, the average EPS estimate is $0.11.
Next year's average estimate for revenue is $439.9 million. The average EPS estimate is $0.34.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 412 members out of 784 rating the stock outperform, and 372 members rating it underperform. Among 209 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 97 give Krispy Kreme Doughnuts a green thumbs-up, and 112 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 $8.96.
Over the decades, small-cap stocks, like Krispy Kreme Doughnuts 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 Krispy Kreme Doughnuts to My Watchlist.
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.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.