Chefs Warehouse Earnings: Here’s Why Investors are Ambivalent Now

The Chefs Warehouse, Inc (NASDAQ:CHEF) delivered a profit and met Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company.

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The Chefs Warehouse, Inc Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 7.69% to $0.14 in the quarter versus EPS of $0.13 in the year-earlier quarter.

Revenue: Rose 42.14% to $139.4 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: The Chefs Warehouse, Inc reported adjusted EPS income of $0.14 per share. By that measure, the company missed the mean analyst estimate of $0.14. It beat the average revenue estimate of $138.06 million.

Quoting Management: “We are very pleased with our first quarter results as we continued to integrate the Michael’s and Queensgate acquisitions, while remaining focused on growing our core customer base,” said Chris Pappas, chairman and chief executive officer of The Chefs’ Warehouse, Inc. “Subsequent to the end of the quarter, we continued our growth strategy of pursing attractive acquisitions with our May 1st announcement of the acquisition of Qzina Specialty Foods. Our pipeline of acquisition candidates interested in becoming part of The Chefs’ Warehouse remains very strong. In addition, we noted modest sequential improvement in our customers’ businesses in the quarter. We were also pleased with the $100.0 million long-term debt financing we completed on April 17th. We believe the proceeds from this financing will help us continue to build The Chefs’ Warehouse into the leading specialty foods distributor in the country.”

Key Stats (on next page)…

Revenue decreased 2.24% from $142.59 million in the previous quarter. EPS decreased 41.67% from $0.24 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.26 to a profit $0.27. For the current year, the average estimate has moved down from a profit of $0.96 to a profit of $0.94 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)