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.

Earnings season is back and more important than ever. Get our newest CHEAT SHEET stock picks now

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.”

Key Stats:

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.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute — click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

Don’t Miss These Additional Hot Stories:

These Companies Know Exactly When to Restock Shelves

David Einhorn’s New Investment Letter: I’m Still Long These Big Names

Are Facebook Shares Finally a Buy After Earnings?