Cabela’s Earnings: Strong Quarter Not Enough for Investors
Cabela’s Incorporated (NYSE:CAB) reported its results for the third quarter. Cabela’s 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
Results: Net income for Cabela’s Incorporated rose to $42.8 million (60 cents per share) vs. $33.3 million (47 cents per share) in the same quarter a year earlier. This marks a rise of 28.5% from the year-earlier quarter.
Revenue: Rose 9.2% to $741.2 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Cabela’s Incorporated fell in line with the mean analyst estimate of 60 cents per share. It beat the average revenue estimate of $606.3 million.
Quoting Management: “The highlight of the quarter was the excellent performance of our new next-generation stores, which bodes well for our future,” said Tommy Millner, Cabela’s Chief Executive Officer. “The eight next-generation stores open for the full quarter outperformed our existing legacy store base in sales and profit per square foot by a wide margin. Additionally, same store sales from our next-generation stores exceeded the performance of our existing stores by several hundred basis points.”
The company has now seen its net income increase for three consecutive quarters. In the second quarter, net income rose 56.1% and in the first quarter, the figure rose 62.1%.
Revenue has risen the past four quarters. Revenue increased 11.6% to $627.3 million in the second quarter. The figure rose 6.3% in the first quarter from the year earlier and climbed 5.3% in the fourth quarter of the last fiscal year from the year-ago quarter.
The company fell in line with estimates last quarter after beating expectations in the previous two quarters. In the second quarter, it topped the mark by 8 cents, and in the first quarter, it was ahead by 7 cents.
Looking Forward: The outlook for the company’s results in the upcoming quarter is unfavorable. The average estimate for the fourth quarter is $1.22 per share, down from $1.23 ninety days ago. For the fiscal year, the average estimate has moved up from $2.67 a share to $2.70 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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