Cabela’s Incorporated Earnings: Five Quarters in a Row of Expanding Margins, Net Income Climbs

Cabela’s Incorporated (NYSE:CAB) reported net income above Wall Street’s expectations for the fourth 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 for the Fourth Quarter

Results: Net income for Cabela’s Incorporated rose to $69.8 million (99 cents per share) vs. $66.3 million (95 cents per share) in the same quarter a year earlier. This marks a rise of 5.3% from the year earlier quarter.

Revenue: Rose 5.3% to $983.7 million from the year earlier quarter.

Actual vs. Wall St. Expectations: Cabela’s Incorporated reported adjusted net income of $1.06 per share. By that measure, the company beat the mean estimate of 99 cents per share. It beat the average revenue estimate of $963 million.

Quoting Management: “Over the past three years, we have focused on improving profitability and after-tax return on invested capital, enabling us to accelerate growth initiatives,” said Tommy Millner, Cabela’s Chief Executive Officer. “Our strong revenue and profit results in the fourth quarter led to record profitability in our Direct and Retail segments for the full year 2011 and reassure us as we invest to accelerate growth over the next few years.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the third quarter, net income rose 68.7% and in the second quarter, the figure rose 20.4%.

Revenue has risen the past four quarters. Revenue increased 5.5% to $678.6 million in the third quarter. The figure rose 6.9% in the second quarter from the year earlier and climbed 4.8% in the first quarter from the year-ago quarter.

The company has now topped analyst estimates for the last three quarters. It beat the mark by 6 cents in the third quarter and by 5 cents in the second quarter.

Looking Forward: The outlook for the company’s results in the upcoming quarter is unfavorable. The average estimate for the first quarter of the next fiscal year is 29 cents per share, down from 30 cents ninety days ago. For the fiscal year, the average estimate has moved down from $2.07 a share to $2.06 over the last ninety days.

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

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com