TrueBlue Beats Up on Analysts Yet Again

TrueBlue (NYSE: TBI  ) reported earnings on Feb. 8. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 30 (Q4), TrueBlue beat expectations on revenues and earnings per share.

Compared to the prior-year quarter, revenue grew and GAAP earnings per share increased significantly.

Gross margins dropped, operating margins grew, and net margins grew.

Revenue details
TrueBlue reported revenue of $350.2 million. The nine analysts polled by S&P Capital IQ predicted a top line of $341.4 million on the same basis. GAAP reported sales were 12% higher than the prior-year quarter's $311.9 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.19. The nine earnings estimates compiled by S&P Capital IQ averaged $0.16 per share. GAAP EPS of $0.19 for Q4 were 111% higher than the prior-year quarter's $0.09 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 26.2%, 10 basis points worse than the prior-year quarter. Operating margin was 3.1%, 130 basis points better than the prior-year quarter. Net margin was 2.2%, 90 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $306.6 million. On the bottom line, the average EPS estimate is $0.04.

Next year's average estimate for revenue is $1.43 billion. The average EPS estimate is $0.94.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 183 members out of 200 rating the stock outperform, and 17 members rating it underperform. Among 54 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 50 give TrueBlue a green thumbs-up, and four give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on TrueBlue is outperform, with an average price target of $16.50.

Over the decades, small-cap stocks like TrueBlue have produced market-beating returns, provided they're value-priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: 2 Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.

• Add TrueBlue to My Watchlist.