Cabela's, Inc. (CAB)

Zacks

Cabela's, Inc. (CAB) second-quarter 2012 earnings of $0.47 per share beat the Zacks Consensus Estimate of $0.39, and surged 46.9% from the prior-year quarter. The quarter witnessed healthy revenue growth and profitability at its retail segment, improved performance at Cabela's CLUB Visa program, increased merchandise gross margin and boost in market share.

Total revenue grew 11.6% to $627.3 million, whereas merchandise gross margin expanded 70 basis points to 37.4% during the quarter. Driven by improving trends, management expects earnings to go beyond the current estimates by 1% to 3% in fiscal 2012. The company looks to enhance its retail square footage growth is focusing on its next-generation store and new Outpost format.

Moreover, the company also remains committed on alleviating bad debt risk in its credit card business. The gradual improvement in the economy has lowered delinquencies and charge-offs.

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