Regis Earnings: Everything You Must Know Now

Regis Corp. (NYSE:RGS) delivered a profit 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.

Regis Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 85% to $0.06 in the quarter versus EPS of $0.40 in the year-earlier quarter.

Revenue: Decreased 11.59% to $502.3 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Regis Corp. reported adjusted EPS income of $0.06 per share. By that measure, the company missed the mean analyst estimate of $0.12. It missed the average revenue estimate of $513.19 million.

Quoting Management: Dan Hanrahan, President and Chief Executive Officer commented, “In the fourth quarter, we made significant investments behind our strategies, drawing from best in class operators. Our major focus was on three initiatives. We rolled out a new point-of-sale system to approximately 6,700 salons throughout North America. This point-of-sale system will provide management with vastly improved measurement and transparency into our salons. Second, we reorganized our field management organization. This management structure will enable localized mentoring and decision making, improve geographic proximity and increase local market efficiency. Third, we standardized our retail plan-o-grams. This improves salon appearance, reduces inventory management time and increases distribution efficiencies. Each of these initiatives is transformational. Executing all three of these initiatives in a single quarter highlights our sense of urgency in creating a stable operating structure that will allow Regis to generate improved financial results on a sustainable basis. We cannot transform Regis into a strong operator without making the changes we did in the fourth quarter. These initiatives are focused on generating guest traffic, delivering an outstanding guest experience and cultivating a loyal guest following. As I have said in the past, changing the strategic direction of any established business requires investment, execution and time. While there has been disruption to our current business performance, I am proud of the progress our entire organization has made in laying the foundation for us to become a best in class operator.”

Key Stats (on next page)…

Revenue decreased 0.52% from $504.94 million in the previous quarter. EPS increased 500% from $0.01 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 $0.06 and has not changed. For the current year, the average estimate is a profit of $0.22, which is the same with that ninety days ago.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

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