Farmer Brothers's Upcoming Earnings: What You Need To Know

Farmer Brothers (NAS: FARM) is expected to report Q3 earnings around May 8. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Farmer Brothers's revenues will grow 2.8% and EPS will turn positive

The average estimate for revenue is $124.9 million. On the bottom line, the average EPS estimate is $0.09.


Revenue details
Last quarter, Farmer Brothers reported revenue of $135.7 million. GAAP reported sales were 3.0% higher than the prior-year quarter's $131.8 million.

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

EPS details
Last quarter, EPS came in at -$0.47. GAAP EPS were -$0.47 for Q2 against -$0.27 per share for the prior-year quarter.

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

Recent performance
For the preceding quarter, gross margin was 37.1%, 330 basis points better than the prior-year quarter. Operating margin was 0.3%, 460 basis points better than the prior-year quarter. Net margin was -5.4%, 230 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $505.7 million. The average EPS estimate is -$0.08.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 31 members out of 43 rating the stock outperform, and 12 members rating it underperform. Among 13 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), eight give Farmer Brothers a green thumbs-up, and five give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Farmer Brothers is buy, with an average price target of $16.00.

Selling to fickle consumers is a tough business for Farmer Brothers or anyone else in the space. But some companies are better equipped to face the future than others. In a new report, we'll give you the rundown on three companies that are setting themselves up to dominate retail. Click here for instant access to this free report.

The article Farmer Brothers's Upcoming Earnings: What You Need To Know 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 position in any of the stocks mentioned. 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 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Learn about investing from the comfort of your own home.

Portfolio Basics

Take the first steps to building your portfolio.

View Course »

Investment Strategies

Learn the strategies you need to build a winning portfolio

View Course »

Add a Comment

*0 / 3000 Character Maximum