Investors are on the edge of their collective seats, hoping that Genesco (NYSE: GCO) will top analyst expectations for the third consecutive quarter. The company will unveil its latest earnings on Wednesday, August 31. Genesco is a retailer and wholesaler of branded footwear, apparel, and accessories.

What analysts say:

  • Buy, sell, or hold?: Analysts strongly back Genesco, with nine of 10 rating it a buy and the remainder rating it a hold. Analysts like Genesco better than competitor Finish Line overall. Analysts still rate the stock a moderate buy, but they are a bit more wary about it compared to three months ago.
  • Revenue Forecasts: On average, analysts predict $447.1 million in revenue this quarter. That would represent a rise of 22.9% from the year-ago quarter.
  • Wall Street Earnings Expectations: The average analyst estimate is earnings of $0.10 per share. Estimates range from $0.07 to $0.12.

What our community says:
CAPS All Stars are solidly behind the stock, with 91.5% awarding it an "outperform" rating. The community at large concurs with the All Stars, with 87.2% assigning it a rating of "outperform." Fools are gung-ho about Genesco, though the message boards have been quiet lately with only 59 posts in the past 30 days. Despite the majority sentiment in favor of Genesco, the stock has a middling CAPS rating of three out of five stars.

Management:
Revenue has now gone up for three straight quarters.

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

51.4%

48.7%

50.9%

50.6%

Operating Margin

5.3%

8.6%

5.7%

(0.9%)

Net Margin

3.1%

5.5%

3.6%

(0.9%)

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