The 10-second takeaway
For the quarter ended Oct. 27 (Q3), ANN INC beat slightly on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share expanded significantly.
Margins grew across the board.
ANN INC chalked up revenue of $612.5 million. The 12 analysts polled by S&P Capital IQ expected revenue of $606.1 million on the same basis. GAAP reported sales were 8.6% higher than the prior-year quarter's $564.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.76. The 13 earnings estimates compiled by S&P Capital IQ averaged $0.75 per share. GAAP EPS of $0.84 for Q3 were 38% higher than the prior-year quarter's $0.61 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 57.9%, 40 basis points better than the prior-year quarter. Operating margin was 10.9%, 120 basis points better than the prior-year quarter. Net margin was 6.7%, 100 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $629.8 million. On the bottom line, the average EPS estimate is $0.26.
Next year's average estimate for revenue is $2.41 billion. The average EPS estimate is $2.30.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 183 members out of 269 rating the stock outperform, and 86 members rating it underperform. Among 94 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 69 give ANN INC a green thumbs-up, and 25 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on ANN INC is outperform, with an average price target of $41.00.
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