7 Days Group Holdings Limited (NYSE:SVN) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.
7 Days Group Holdings Limited Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased 89.74% to $0.04 in the quarter versus EPS of $0.39 in the year-earlier quarter.
Revenue: Rose 13.76% to $103.1 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: 7 Days Group Holdings Limited reported adjusted EPS income of $0.04 per share. By that measure, the company missed the mean analyst estimate of $0.86. It missed the average revenue estimate of $641.86 million.
Quoting Management: Mr. Yuezhou Lin, 7 Days Group’s Chief Executive Officer and Director, commented, “We are pleased to report a strong first quarter with financial results exceeding our guidance, setting a solid start for year 2013. Our outlook for the remainder of 2013 is favorable, as we have built a healthy pipeline and expect to benefit from the increasing economies of scale. We expect to maintain our fast expansion pace, therefore to solidify our market leader position in the economy hotel industry.”
Key Stats (on next page)…
Revenue decreased 0% from $0 in the previous quarter. EPS decreased 94.87% from $0.78 in the previous quarter.
Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $1.49 to a profit $1.72. For the current year, the average estimate has moved down from a profit of $5.04 to a profit of $4.81 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)