Cabela’s Earnings Cheat Sheet: Reeling in the Profits

Cabela’s Incorporated (NASDAQ:CAB) reported its results for the first quarter. Cabela's, Inc. is a specialty retailer, and a direct marketer, of hunting, fishing, camping, and related outdoor merchandise.

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Cabela’s Incorporated Earnings Cheat Sheet for the First Quarter

Results: Net income for Cabela’s Incorporated rose to $17.8 million (25 cents/share) vs. $8.1 million (12 cents/share) in the same quarter a year earlier. A more than twofold rise from the year earlier quarter.

Revenue: Rose 4.8% to $586.7 million YoY.

Actual vs. Wall St. Expectations: CAB fell right in step with the street’s estimates of 25 cents/share.

Quoting Management: “We are very pleased by our performance in the quarter as it provides strong ongoing validation our strategies are working,” said Tommy Millner, Cabela’s Chief Executive Officer. “Furthermore, investments in our Retail business that we began last fall and continued into the first quarter drove higher comparable store sales, increased customer satisfaction, and expanded market share. Exceptional results in Retail revenue and segment profitability, record performance at our Cabela’s CLUB Visa program, and strong consolidated gross margin results led to further increases in one of our vitally important metrics – after-tax return on invested capital.”

Key Stats:

The company has now seen net income rise in three-straight quarters. In the fourth quarter of the last fiscal year, net income rose more than threefold and in the third quarter of the last fiscal year, the figure rose 5.2%.

Gross margins grew 0.7 percentage point to 41.8%. The growth seemed to be driven by increased revenue, as the figure rose 4.8% from the year earlier quarter while costs rose 3.6%.

Over the last five quarters, revenue has increased 1.8% on average year over year. The biggest increase came in the most recent quarter, when revenue rose 4.8% from the year earlier quarter.

Competitors to Watch: Big five Sporting Goods Corp. (NASDAQ:BGFV), Dick’s Sporting Goods, Inc. (NYSE:DKS), Sport Chalet, Inc. (NASDAQ:SPCHA), Golfsmith Intl. Hldgs., Inc. (NASDAQ:GOLF), Dover Saddlery, Inc. (NASDAQ:DOVR), Hibbett Sports, Inc. (NASDAQ:HIBB), West Marine, Inc. (NASDAQ:WMAR), Gander Mountain Company (GMTA), Fairchild Corporation (FCHDQ), and KlausTech, Inc. (KLTI).

Today’s Performance: Shares of CAB are trading at $26.39 as of April 28, 2011 at 03:29 PM ET, down 8% from the previous closing price of $28.91.


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