Cabela's Q3 Results Climb, But Miss Estimates; Warns On Q4 Direct Revenue

(RTTNews) - Specialty retailer Cabela's Inc. (CAB) reported Thursday that its third-quarter net income increased 16.6 percent to $49.9 million from $42.8 million last year. Earnings per share climbed 16.7 percent to $0.70 from $0.60 a year ago.

Total revenue increased 14.8 percent to $850.8 million.

Analysts polled by Thomson Reuters expected earnings of $0.71 per share on revenues of $854.10 million. Analysts' estimates typlically exclude special items.

The third-quarter comparable store sales increased 3.9 percent. Excluding firearms, comp store sales increased 5.3 percent.

Looking ahead, the company said it is comfortable with the current external earnings estimates for the fourth quarter of 2013. While 2014 budget is not yet finalized, the company expects 2014 earnings per share to be the sixth consecutive year of double-digit earnings per share growth.

Tommy Millner, Cabela's Chief Executive Officer, said, "Although Direct revenue increased for the fourth consecutive quarter, the results fell short of our expectations. These results were caused by a deceleration in ammunition sales and Internet traffic, lower average ticket and a more cautious consumer. Since we expect these trends to continue, our Direct business in the fourth quarter is anticipated to decline at a mid-single digit rate."

Separately, Cabela's announced its plans to open three more new stores.

In pre-market activity, Cabela's shares are currently trading at $58.55, down $3.84 or 6.15 percent.