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Motley Fool Staff
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February 9, 2012
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Fossil (Nasdaq: FOSL ) will try to beat its earnings estimates for the fifth consecutive quarter. The company will unveil its latest earnings on Tuesday, February 14. Fossil is a global design, marketing and distribution company that specializes in consumer fashion accessories. .
What analysts say:
- Buy, sell, or hold?: Analysts strongly back Fossil, with nine of 12 rating it a buy and the remainder rating it a hold. 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 $841.4 million in revenue this quarter. That would represent a rise of 20% from the year-ago quarter.
- Wall Street Earnings Expectations: The average analyst estimate is earnings of $1.77 per share. Estimates range from $1.74 to $1.83.
What our community says:
CAPS All-Stars are solidly backing the stock, with 94.5% awarding it an "outperform" rating. The greater community concurs with the All-Stars, as 88.6% give it a rating of "outperform." Fools are keen on Fossil and haven't been shy with their opinions lately, logging 133 posts in the past 30 days. Despite the majority sentiment in favor of Fossil, the stock has a middling CAPS rating of three out of five stars.
Management:
Fossil's profit has risen year-over-year by an average of 22.5% over the past five 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 company's net margins have slipped in the last two quarters year-over-year. Net margins reflect what percentage of revenue becomes profit. Here are Fossil's reported margins for the last four quarters:
| Quarter |
Q3 |
Q2 |
Q1 |
Q4 |
| Gross Margin |
55.9% |
56% |
56.2% |
57.1% |
| Operating Margin |
18.5% |
15.5% |
17.2% |
21.3% |
| Net Margin |
10.8% |
9.2% |
10.4% |
13.8% |
One final thing: If you want to keep tabs on Fossil movements, and for more analysis on the company, make sure you add it to your Watchlist.
The Motley Fool owns shares of Fossil. Motley Fool newsletter services have recommended buying shares of Fossil. Motley Fool newsletter services have recommended shorting Fossil.. 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.
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