Genesco Earnings Preview (GCO)

Genesco Earnings Preview

By Motley Fool Staff | More Articles
November 17, 2011 | Comments (0)

Investors are on the edge of their seats, hoping that Genesco (NYSE: GCO ) will top analyst expectations for the fourth consecutive quarter. The company will unveil its latest earnings on Tuesday, Nov. 22. Genesco is a retailer and wholesaler of branded footwear, apparel and accessories.

What analysts say:

Buy, sell, or hold?: Analysts strongly back Genesco, with eight of nine rating it a buy and the remainder rating it a hold. Analysts don't like Genesco as much as competitor Finish Line overall. While analysts still rate the stock a moderate buy, they are a little more optimistic about it compared to three months ago.
Revenue forecasts: On average, analysts predict $585.7 million in revenue this quarter. That would represent a rise of 26% from the year-ago quarter.
Wall Street earnings expectations: The average analyst estimate is earnings of $0.95 per share. Estimates range from $0.88 to $0.99.

What our community says:
CAPS All-Stars are solidly backing the stock with 92% assigning it an "outperform" rating. The community at large concurs with the All-Stars with 86.7% granting it a rating of "outperform." Fools are keen on Genesco, though the message boards have been quiet lately with only 60 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:
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	Q2	Q1	Q4	Q3
Gross Margin	50.4%	51.4%	48.7%	50.9%
Operating Margin	0.4%	5.3%	8.6%	5.7%
Net Margin	(0.1%)	3.1%	5.5%	3.6%

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

Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Earnings estimates provided by Zacks.

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment icon found on every comment.