Fresh Market Meets on the Top Line, Misses Where it Counts

Fresh Market (Nasdaq: TFM  ) reported earnings on Nov. 28. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Oct. 28 (Q3), Fresh Market met expectations on revenues and missed estimates on earnings per share.

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

Gross margins increased, operating margins increased, net margins dropped.

Revenue details
Fresh Market tallied revenue of $321.5 million. The 13 analysts polled by S&P Capital IQ predicted net sales of $318.7 million on the same basis. GAAP reported sales were 22% higher than the prior-year quarter's $263.3 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 $0.24. The 13 earnings estimates compiled by S&P Capital IQ forecast $0.26 per share. GAAP EPS of $0.23 for Q3 were 21% higher than the prior-year quarter's $0.19 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 33.1%, 110 basis points better than the prior-year quarter. Operating margin was 5.6%, 10 basis points better than the prior-year quarter. Net margin was 3.4%, 10 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $380.4 million. On the bottom line, the average EPS estimate is $0.45.

Next year's average estimate for revenue is $1.34 billion. The average EPS estimate is $1.36.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 128 members out of 152 rating the stock outperform, and 24 members rating it underperform. Among 45 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 31 give Fresh Market a green thumbs-up, and 14 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Fresh Market is outperform, with an average price target of $63.56.

Is Fresh Market the right retailer for your portfolio? Learn how to maximize your investment income and "Secure Your Future With 9 Rock-Solid Dividend Stocks," including one above-average retailing powerhouse. Click here for instant access to this free report.

• Add Fresh Market to My Watchlist.