Krispy Kreme (KKD) Beats on EPS, Misses Revenue

Krispy Kreme Doughnuts, Inc. (KKD) dropped $1.00 to $19.35 in after-hours trading after it reported fiscal-fourth quarter earnings.

The doughnut chain handed in earnings of $0.17 per share on revenue of $125.4 million, beating Wall Street EPS estimates of $0.16 on revenue of $128.07 million.

For full-year 2015, the company reported net income of $30.1 million, or $0.44/shr. Revenue was reported as $490.3 million from $460.3 million in 2013.

For FY16, KKD provided EPS guidance of $0.79-$0.85 versus consensus of $0.85 per share.

On valuation measures, Krispy Kreme Doughnuts Inc. shares, which currently have an average 3-month trading volume of 468K shares, trade at a trailing-12 P/E of 36.87, a forward P/E of 24.23 and a P/E to growth ratio of 1.13. The median Wall Street price target on the name is $24.50 with a high target of $27.00. Currently ticker boasts 4 ‘Buy’ endorsements, compared to no ’Holds’ and no ‘Sell’.

Profitability-wise, KKD has a t-12 profit and operating margin of 8.01% and 10.06%, respectively. The $1.32 billion market cap company reported $50.97 million in cash in its most recent quarter.

KKD currently prints a one year return of about 6.65% and a year-to-date return of around 3.15%.

The chart below shows where the equity has traded over the last 52 weeks.

Krispy Kreme operates as a branded retailer and wholesaler of doughnuts, beverages, and treats and packaged sweets. The company was founded in 1937 and is headquartered in Winston-Salem, North Carolina.

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