Krispy Kreme Doughnuts Earnings: Profit Down, Still Beats Estimates

Krispy Kreme Doughnuts Inc. (NYSE:KKD) posted lower net income in the first quarter compared with a year-earlier period. Krispy Kreme Doughnuts and its subsidiaries are engaged in the sale of doughnuts and related items through company-owned stores.

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Krispy Kreme Doughnuts Earnings Cheat Sheet for the First Quarter

Results: Net income for Krispy Kreme Doughnuts Inc. fell to $6 million (8 cents per share) vs. $9.2 million (13 cents per share) a year earlier. This is a decline of 34.3% from the year-earlier quarter.

Revenue: Rose 3.7% to $108.5 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Krispy Kreme Doughnuts Inc. reported adjusted net income of 14 cents per share. By that measure, the company beat the mean estimate of 8 cents per share. It fell short of the average revenue estimate of $111.4 million.

Quoting Management: Chief Executive Officer James H. Morgan commented: “We got off to a good start in fiscal 2013 as operating income rose 11% on a 4% increase in revenues. All four of our business segments reported improved operating results compared to last year. Based on these results and other factors, we expect our business model to generate healthy cash flows and financial returns for investors, and we remain confident in our previous outlook for the full year.”

Key Stats:

Revenue has risen for the last four quarters. Revenue increased 11.2% to $102 million in the fourth quarter of the last fiscal year. The figure rose 9.4% in the third quarter of the last fiscal year from the year earlier and climbed 11.4% in the second quarter of the last fiscal year from the year-ago quarter.

The company topped expectations last quarter after falling short of forecasts in the fourth quarter of the last fiscal year with net income of 6 cents versus a mean estimate of net income of 7 cents per share.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the second quarter has moved down from 7 cents a share to 5 cents over the last sixty days. The average estimate for the fiscal year is now 25 cents per share, down from 35 cents sixty days ago.

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

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