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G&K Services Beats Analyst Estimates on EPS

Tuesday - 4/30/2013, 2:00am  ET

G&K Services reported earnings on April 30. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 30 (Q3), G&K Services met expectations on revenues and beat expectations on earnings per share.

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

Margins expanded across the board.

Revenue details
G&K Services reported revenue of $226.6 million. The seven analysts polled by S&P Capital IQ expected to see revenue of $229.1 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.

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 $0.69. The seven earnings estimates compiled by S&P Capital IQ anticipated $0.62 per share. GAAP EPS were $0.69 for Q3 versus -$0.26 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 31.5%, 190 basis points better than the prior-year quarter. Operating margin was 9.4%, 280 basis points better than the prior-year quarter. Net margin was 6.0%, 820 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $233.5 million. On the bottom line, the average EPS estimate is $0.66.

Next year's average estimate for revenue is $913.9 million. The average EPS estimate is $2.59.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 38 members out of 41 rating the stock outperform, and three members rating it underperform. Among 10 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 10 give G&K Services a green thumbs-up, and give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on G&K Services is outperform, with an average price target of $46.33.

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This article was originally published as G&K Services Beats Analyst Estimates on EPSon Fool.com

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