True Religion Apparel Earnings Preview

True Religion Apparel (Nasdaq: TRLG  ) hasn't been able to establish an earnings trend, bouncing between beating and falling short of estimates during the past fiscal year. The company will unveil its latest earnings on Thursday. True Religion Apparel designs, markets, distributes and sells apparel under the brand name True Religion Brand Jeans to fashion-conscious consumers on six continents: North America, Europe, Asia, Australia, Africa, and South America.

What analysts say

  • Buy, sell, or hold?: Analysts are bullish on this stock with four analysts rating it as a buy and only one rating it as a sell. Analysts like True Religion Apparel better than competitor VF overall. That rating hasn't budged in three months as analysts have remained unchanged in their opinion of the stock.
  • Revenue forecasts: On average, analysts predict $91.5 million in revenue this quarter. That would represent a rise of 11.3% from the year-ago quarter.
  • Wall Street earnings expectations: The average analyst estimate is earnings of $0.35 per share. Estimates range from $0.29 to $0.41.

What our community says
CAPS All-Stars are solidly behind the stock with 89.6% awarding it an outperform rating. The community at large agrees with the All-Stars with 88% granting it a rating of outperform. Fools are keen on True Religion Apparel and haven't been shy with their opinions lately, logging 282 posts in the past 30 days. Despite the majority sentiment in favor of True Religion Apparel, the stock has a middling CAPS rating of three out of five stars.

Management:
True Religion Apparel's income has fallen year over year by an average of 8.2%.

Now let's look at how efficient management is at running the business. Traditionally, margins represent the efficiency with which companies capture portions of sales dollars. The following table shows gross, operating, and net margins over the past four quarters.

Quarter

Q1

Q4

Q3

Q2

Gross Margin

64.8%

62.9%

62.1%

64.1%

Operating Margin

15.8%

23.6%

19.8%

14.6%

Net Margin

9.6%

14.2%

12.7%

9.2%

One final thing: If you want to keep tabs on True Religion Apparel movements, and for more analysis on the company, make sure you add it to your watchlist.

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