West Marine, Inc. (NASDAQ:WMAR) reported net income above Wall Street’s expectations for the second quarter. West Marine, Inc. operates as a boating supply retailer in the United States. It operates through three segments: Stores, Port Supply and Direct Sales. Cabela’s Inc. Earnings Cheat Sheet: Beats Wall Street Expectations>>

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West Marine Earnings Cheat Sheet for the Second Quarter

Results: Net income for the specialty retail company rose to $44.7 million ($1.92 per share) vs. $35.1 million ($1.52 per share) in the same quarter a year earlier. This marks a rise of 27.4% from the year earlier quarter.

Revenue: Rose 1.1% to $236 million from the year earlier quarter.

Actual vs. Wall St. Expectations: WMAR beat the mean analyst estimate of $1.71 per share. Analysts were expecting revenue of $238.6 million.

Quoting Management: Geoff Eisenberg, Chief Executive Officer of West Marine, commented, “After a much later beginning to the boating season because of difficult weather in many markets, Customer activity finally kicked in during the last month of the quarter. We experienced stronger year-over-year sales after Memorial Day, while continuing to manage expenses and gross margin. Based on our current outlook, combined with positive Customer response to many of our sales initiatives, we have increased our full-year guidance for both revenues and earnings.”

Key Stats:

Revenue has risen the past four quarters. Revenue increased 3.9% to $113.8 million in the first quarter. The figure rose 3.3% in the fourth quarter of the last fiscal year from the year earlier and climbed 2.6% in the third quarter of the last fiscal year from the year-ago quarter.

The company beat estimates last quarter after falling short in the previous two quarters. In the first quarter, it missed the mark by 5 cents, and in the fourth quarter of the last fiscal year, it fell short by 21 cents.

WMAR’s profit in the latest quarter follows losses in the previous two quarters. The company reported a net loss of $12.3 million in the first quarter and a loss of $19.8 million in the fourth quarter of the last fiscal year.

Gross margins expanded last quarter, rising 0.6 percentage point to 36% from the year earlier quarter. This snaps a streak of two consecutive quarters of shrinking margins.

Competitors to Watch: MarineMax, Inc. (NYSE:HZO), Cabela’s Incorporated (NYSE:CAB), Golfsmith Intl. Hldgs., Inc. (NASDAQ:GOLF), Winmark Corporation (NASDAQ:WINA), Dick’s Sporting Goods, Inc. (NYSE:DKS), Dover Saddlery, Inc. (NASDAQ:DOVR), Sport Chalet, Inc. (NASDAQ:SPCHA).

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(Source: Xignite Financials)

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