Regal Entertainment Group Misses Where it Counts

Regal Entertainment Group (NYSE: RGC  ) reported earnings on April 30. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 28 (Q1), Regal Entertainment Group met expectations on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue contracted. Non-GAAP earnings per share shrank significantly. GAAP earnings per share dropped significantly.

Gross margins expanded, operating margins shrank, net margins shrank.

Revenue details
Regal Entertainment Group booked revenue of $642.8 million. The 15 analysts polled by S&P Capital IQ expected a top line of $649.4 million on the same basis. GAAP reported sales were 6.1% lower than the prior-year quarter's $684.9 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 $0.13. The 16 earnings estimates compiled by S&P Capital IQ anticipated $0.15 per share. Non-GAAP EPS of $0.13 for Q1 were 57% lower than the prior-year quarter's $0.30 per share. GAAP EPS of $0.14 for Q1 were 53% lower than the prior-year quarter's $0.30 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 62.7%, 70 basis points better than the prior-year quarter. Operating margin was 8.5%, 480 basis points worse than the prior-year quarter. Net margin was 3.5%, 330 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $810.6 million. On the bottom line, the average EPS estimate is $0.31.

Next year's average estimate for revenue is $3.01 billion. The average EPS estimate is $0.96.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 152 members out of 197 rating the stock outperform, and 45 members rating it underperform. Among 66 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 54 give Regal Entertainment Group a green thumbs-up, and 12 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Regal Entertainment Group is hold, with an average price target of $17.15.

Can your portfolio provide you with enough income to last through retirement? You'll need more than Regal Entertainment Group. Learn how to maximize your investment income and "Secure Your Future With 9 Rock-Solid Dividend Stocks." Click here for instant access to this free report.

Add Regal Entertainment Group to My Watchlist.