The 10-second takeaway
For the quarter ended Oct. 31 (Q3), Movado Group beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share grew significantly.
Gross margins contracted, operating margins expanded, net margins grew.
Movado Group notched revenue of $160.2 million. The two analysts polled by S&P Capital IQ predicted net sales of $157.7 million on the same basis. GAAP reported sales were 12% higher than the prior-year quarter's $142.6 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 $0.67. The three earnings estimates compiled by S&P Capital IQ anticipated $0.62 per share. GAAP EPS of $1.34 for Q3 were 106% higher than the prior-year quarter's $0.65 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 56.4%, 40 basis points worse than the prior-year quarter. Operating margin was 15.6%, 220 basis points better than the prior-year quarter. Net margin was 21.5%, 1,000 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $130.0 million. On the bottom line, the average EPS estimate is $0.29.
Next year's average estimate for revenue is $509.4 million. The average EPS estimate is $1.49.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 165 members out of 198 rating the stock outperform, and 33 members rating it underperform. Among 79 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 68 give Movado Group 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 Movado Group is outperform, with an average price target of $39.67.
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