Cabela Reports In Line, Stock Falls Fast

Cabelas Inc. (NYSE: CAB), who sell hunting, fishing and camping merchandise, reported their fourth quarter earnings. Earnings for the quarter came in at $0.77, versus $0.79 for the prior year. This is in line with the expectations of $0.77. Revenue for the quarter came in above expectations at $917 million.

Profitability in the retail segment improved operating margins by 0.70%. The CEO of Cabelas was very pleased with the earnings for the quarter, but is cautiously optimistic for 2010. The stock is trading down 5.6% in premarket trading. I believe this is due to Cabelas just not exciting investors with growth and outlook.