Pantry Earnings: Everything You Must Know Now

Pantry Inc. (NASDAQ:PTRY) had a loss and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.

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Pantry Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased to $-0.28 in the quarter versus EPS of $-0.30 in the year-earlier quarter.

Revenue: Decreased 8.24% to $1.89 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Pantry Inc. reported adjusted EPS loss of $0.28 per share. By that measure, the company missed the mean analyst estimate of $-0.26. It missed the average revenue estimate of $1.9 billion.

Quoting Management: President and Chief Executive Officer Dennis G. Hatchell said, “The second quarter was challenging from a customer traffic standpoint but fuel margins were stronger than we anticipated. This allowed us to improve Adjusted EBITDA to $39.1 million, which was in line with our expectations. Unfavorable weather and weak consumer confidence contributed to a decline in comparable store traffic. This impacted both our comparable store merchandise revenue and retail fuel gallons which declined 2.0% and 7.9%, respectively. We were encouraged by the 2.6% improvement in average sales per customer but disappointed that this was more than offset by a 4.6% decline in traffic inside our stores. We believe that our merchandising initiatives are having a positive impact and are confident they will drive stronger overall performance when customer traffic levels improve.”

Key Stats (on next page)…

Revenue decreased 1.2% from $1.92 billion in the previous quarter. EPS decreased to $-0.28 in the quarter versus EPS of $-0.08 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.61 and has not changed. For the current year, the average estimate has moved down from a profit of $1.00 to a profit of $0.73 over the last ninety days.

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