Cabela’s Incorporated Earnings Cheat Sheet: Profit Rises for Third Straight Quarter

Cabela’s Incorporated (NYSE:CAB) reported net income above Wall Street’s expectations for the third quarter. Cabela’s is a specialty retailer and a direct marketer of hunting, fishing, camping, and related outdoor merchandise.

Investing Insights: Here’s Why Chipotle’s Stock Keeps Winning.

Cabela’s Incorporated Earnings Cheat Sheet for the Third Quarter

Results: Net income for Cabela’s Incorporated rose to $33.3 million (47 cents per share) vs. $19.7 million (29 cents per share) in the same quarter a year earlier. This marks a rise of 68.7% from the year earlier quarter.

Revenue: Rose 6% to $678.6 million from the year earlier quarter.

Actual vs. Wall St. Expectations: CAB reported adjusted net income of 50 cents per share. By that measure, the company beat the mean estimate of 44 cents per share. Analysts were expecting revenue of $681.5 million.

Quoting Management: “We have made further significant improvements in areas of our strategic focus,” said Tommy Millner, Cabela’s Chief Executive Officer. “These include strong third quarter results in merchandise margin, Retail segment operating margin, Direct channel revenue and Direct channel operating margin. Additionally, our new next-generation stores continue to perform extremely well, thus increasing our confidence to accelerate future retail expansion in the United States and Canada.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the second quarter, net income rose 20.4% and in the first quarter, the figure rose more than twofold.

Revenue has risen the past four quarters. Revenue increased 6.9% to $562.1 million in the second quarter. The figure rose 4.8% in the first quarter from the year earlier and climbed 1.7% in the fourth quarter of the last fiscal year from the year-ago quarter.

The company has now beaten estimates the last two quarters. In the second quarter, it topped expectations with net income of 32 cents versus a mean estimate of net income of 27 cents per share.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the fourth quarter has moved down from $1.01 a share to $1 over the last sixty days. The average estimate for the fiscal year is $2 per share, a rise from $1.95 ninety days ago.

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).

Investing Insights: Here’s Why Chipotle’s Stock Keeps Winning.

(Source: Xignite Financials)

 

More from The Cheat Sheet