Cabela’s Inc. Earnings Cheat Sheet: Beats Wall Street Expectations

Cabela’s Incorporated (NASDAQ:CAB) reported net income above Wall Street’s expectations for the second 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 Second Quarter

Results: Net income for Cabela’s Incorporated rose to $21.7 million (31 cents per share) vs. $18 million (26 cents per share) in the same quarter a year earlier. This marks a rise of 20.4% from the year earlier quarter.

Revenue: Rose 6.9% to $562.1 million from the year earlier quarter.

Actual vs. Wall St. Expectations: CAB reported adjusted net income of 32 cents per share. By that measure, the company beat the mean estimate of 27 cents per share. Analysts were expecting revenue of $566.1 million.

Quoting Management: “We are very pleased with the improvements in virtually all elements of our areas of strategic focus,” said Tommy Millner, Cabela’s Chief Executive Officer. “These include increases in comparable store sales, higher gross margins and record second quarter operating margins. Also, for the longer term, we are glad to see increased customer satisfaction and expanded market share. These strong results led to further increases in after-tax return on invested capital.”

Key Stats:

Last quarter marked the fifth consecutive quarter of gross margins expanding as the company’s gross margin expanded two percentage points to 45% from the year earlier quarter. Over that span, margins have grown on average 1.7 percentage points per quarter on a year-over-year basis.

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

Revenue has risen the past four quarters. Revenue increased 4.8% to $586.7 million in the first quarter. The figure rose 1.7% in the fourth quarter of the last fiscal year from the year earlier and climbed 3% in the third quarter of the last fiscal year from the year-ago quarter.

The company beat estimates last quarter after being in line with expectations in the first quarter with net income of 25 cents per share.

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).

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(Source: Xignite Financials)