Monday, May 27, 2013

Monro Muffler Brake Beats on Revenue, Matches Expectations on EPS

Monro Muffler Brake (Nasdaq: MNRO  ) reported earnings on May 21. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 30 (Q4), Monro Muffler Brake beat expectations on revenues and met expectations on earnings per share.

Compared to the prior-year quarter, revenue increased. GAAP earnings per share dropped significantly.

Margins dropped across the board.

Revenue details
Monro Muffler Brake booked revenue of $195.9 million. The eight analysts polled by S&P Capital IQ expected a top line of $190.4 million on the same basis. GAAP reported sales were 14% higher than the prior-year quarter's $171.7 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 eight earnings estimates compiled by S&P Capital IQ forecast $0.25 per share. GAAP EPS of $0.25 for Q4 were 22% lower than the prior-year quarter's $0.32 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 36.0%, 270 basis points worse than the prior-year quarter. Operating margin was 7.9%, 340 basis points worse than the prior-year quarter. Net margin was 4.1%, 200 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $209.4 million. On the bottom line, the average EPS estimate is $0.49.

Next year's average estimate for revenue is $864.6 million. The average EPS estimate is $1.78.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 77 members out of 91 rating the stock outperform, and 14 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 $40.00.

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