Town Sports International Holdings Beats Analyst Estimates on EPS

Town Sports International Holdings (NAS: CLUB) reported earnings on July 26. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q2), Town Sports International Holdings met expectations on revenues and beat expectations on earnings per share.

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


Margins increased across the board.

Revenue details
Town Sports International Holdings reported revenue of $122.2 million. The two analysts polled by S&P Capital IQ expected sales of $124.1 million on the same basis. GAAP reported sales were 3.3% higher than the prior-year quarter's $118.3 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 $0.23. The two earnings estimates compiled by S&P Capital IQ predicted $0.21 per share. GAAP EPS were $0.23 for Q2 compared to -$0.02 per share for the prior-year quarter.

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 26.5%, 130 basis points better than the prior-year quarter. Operating margin was 11.3%, 240 basis points better than the prior-year quarter. Net margin was 4.4%, 470 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $121.9 million. On the bottom line, the average EPS estimate is $0.15.

Next year's average estimate for revenue is $490.2 million. The average EPS estimate is $0.68.

Investor sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 61 members out of 79 rating the stock outperform, and 18 members rating it underperform. Among 22 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 15 give Town Sports International Holdings a green thumbs-up, and seven give it a red thumbs-down.

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

The article Town Sports International Holdings Beats Analyst Estimates on EPS originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.


Increase your money and finance knowledge from home

Basics of Diversification

Learn one of the fundamental concepts of building a portfolio.

View Course »

Investing in Emerging Markets

Learn to invest in a globalized world.

View Course »

Add a Comment

*0 / 3000 Character Maximum