Will These Numbers From Fossil Be Good Enough for You?

Fossil (Nasdaq: FOSL  ) is expected to report Q2 earnings on Aug. 7. Here's what Wall Street wants to see.

The 10-second takeaway
Comparing the upcoming quarter with the prior-year quarter, average analyst estimates predict Fossil's revenues will expand 14.1% and EPS will compress -1.3%.

The average estimate for revenue is $635.1 million. On the bottom line, the average EPS estimate is $0.79.

Revenue details
Last quarter, Fossil recorded revenue of $589.5 million. GAAP reported sales were 9.8% higher than the prior-year quarter's $537.0 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, EPS came in at $0.93. GAAP EPS of $0.93 for Q1 were 8.1% higher than the prior-year quarter's $0.86 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 55.8%, 40 basis points worse than the prior-year quarter. Operating margin was 14.1%, 310 basis points worse than the prior-year quarter. Net margin was 9.9%, 50 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $2.93 billion. The average EPS estimate is $5.32.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 541 members out of 601 rating the stock outperform, and 60 members rating it underperform. Among 171 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 160 give Fossil a green thumbs-up, and 11 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Fossil is outperform, with an average price target of $136.18.

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Seth Jayson owned shares of the following at the time of publication: Fossil. You can view his stock holdings here. He is the co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of Fossil. Motley Fool newsletter services recommend Fossil. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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.


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