DineEquity Beats Analyst Estimates on EPS
DineEquity (NYS: DIN) reported earnings on May 1. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), DineEquity missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly and GAAP earnings per share improved.
Margins expanded across the board.
DineEquity tallied revenue of $245.6 million. The five analysts polled by S&P Capital IQ anticipated sales of $252.3 million on the same basis. GAAP reported sales were 18% lower than the prior-year quarter's $300.2 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 $1.36. The five earnings estimates compiled by S&P Capital IQ predicted $1.29 per share. GAAP EPS of $1.64 for Q1 were 7.2% higher than the prior-year quarter's $1.53 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 44.2%, 730 basis points better than the prior-year quarter. Operating margin was 26.8%, 360 basis points better than the prior-year quarter. Net margin was 12.8%, 290 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $225.8 million. On the bottom line, the average EPS estimate is $1.05.
Next year's average estimate for revenue is $892.4 million. The average EPS estimate is $4.33.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 98 members out of 218 rating the stock outperform, and 120 members rating it underperform. Among 69 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 34 give DineEquity a green thumbs-up, and 35 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on DineEquity is hold, with an average price target of $56.20.
Over the decades, small-cap stocks like DineEquity have produced 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: 2 Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add DineEquity 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.