Wednesday, November 7, 2012

DineEquity Beats Analyst Estimates on EPS

DineEquity (NYSE: DIN  ) reported earnings on May 1. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), DineEquity missed estimates on revenues and beat expectations on earnings per share.

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

Margins expanded across the board.

Revenue details
DineEquity tallied revenue of $245.6 million. The five analysts polled by S&P Capital IQ anticipated sales of $252.3 million on the same basis. GAAP reported sales were 18% lower than the prior-year quarter's $300.2 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 $1.36. The five earnings estimates compiled by S&P Capital IQ predicted $1.29 per share. GAAP EPS of $1.64 for Q1 were 7.2% higher than the prior-year quarter's $1.53 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 44.2%, 730 basis points better than the prior-year quarter. Operating margin was 26.8%, 360 basis points better than the prior-year quarter. Net margin was 12.8%, 290 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $225.8 million. On the bottom line, the average EPS estimate is $1.05.

Next year's average estimate for revenue is $892.4 million. The average EPS estimate is $4.33.

Investor sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 98 members out of 218 rating the stock outperform, and 120 members rating it underperform. Among 69 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 34 give DineEquity a green thumbs-up, and 35 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on DineEquity is hold, with an average price target of $56.20.

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