Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Fossil Shares Surged: What You Need to Know

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of watchmaker Fossil (Nasdaq: FOSL  ) were ticking higher today, rising as much as 16% in intraday trading after the company reported fourth-quarter results.

So what: Despite the strong market reaction, Fossil's results were actually a bit of a mixed bag. On the clear "plus" side was the company's earnings per share of $1.87, which is up 28% from last year and well ahead of the $1.77 that Wall Street was expecting. The YOY growth was driven by operating-income growth of 16%, a lower tax rate, and a nearly 5% decrease in the number of shares outstanding.

Revenue for the quarter increased 18.5%, which is impressive growth, but the $831 million total was short of the $841 million that analysts had estimated.

Now what: Guidance wasn't overly bullish either. For the first quarter, the company sees EPS between $0.90 and $0.91, which is solidly below Wall Street estimates of $0.98. For the full year, the company projected per-share profit of $5.40 to $5.50, which, at the midpoint, is a penny above analysts' current view.

In all, it certainly wasn't a bad report from Fossil, and in a tough retail environment, it's encouraging that management's guidance basically lines up with the expectations that were already out there. However, the extremely strong market reaction today does have me shaking my head a bit.

Want to keep up to date on Fossil? Add it to your Watchlist.

Fool contributor Matt Koppenheffer does not have a financial interest in any of the companies mentioned. You can check out what Matt is keeping an eye on by visiting his CAPS portfolio, or you can follow Matt on Twitter @KoppTheFool or Facebook

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 Fool's disclosure policy prefers dividends over a sharp stick in the eye.

Read/Post Comments (0) | Recommend This Article (2)

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 Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1780941, ~/Articles/ArticleHandler.aspx, 10/25/2016 3:02:46 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 5 hours ago Sponsored by:
DOW 18,223.03 77.32 0.43%
S&P 500 2,151.33 10.17 0.47%
NASD 5,309.83 52.43 1.00%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/24/2016 4:00 PM
FOSL $29.18 Up +0.78 +2.75%
Fossil CAPS Rating: ****