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Michael Kors Holdings Crushes Earnings Estimates

Michael Kors Holdings (NYSE: KORS  ) reported earnings on Feb. 12. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 29 (Q3), Michael Kors Holdings beat expectations on revenues and crushed expectations on earnings per share.

Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share grew significantly.

Margins increased across the board.

Revenue details
Michael Kors Holdings chalked up revenue of $636.8 million. The 12 analysts polled by S&P Capital IQ anticipated sales of $544.8 million on the same basis. GAAP reported sales were 70% higher than the prior-year quarter's $373.6 million.

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

EPS details
EPS came in at $0.64. The 11 earnings estimates compiled by S&P Capital IQ averaged $0.41 per share. GAAP EPS of $0.64 for Q3 were 205% higher than the prior-year quarter's $0.21 per share.

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

Margin details
For the quarter, gross margin was 60.2%, 80 basis points better than the prior-year quarter. Operating margin was 32.2%, 1,400 basis points better than the prior-year quarter. Net margin was 20.4%, 1,000 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $517.2 million. On the bottom line, the average EPS estimate is $0.31.

Next year's average estimate for revenue is $2.01 billion. The average EPS estimate is $1.55.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 188 members out of 227 rating the stock outperform, and 39 members rating it underperform. Among 53 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 36 give Michael Kors Holdings a green thumbs-up, and 17 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Michael Kors Holdings is buy, with an average price target of $65.15.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. 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.

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  • Report this Comment On February 13, 2013, at 7:53 AM, upndn wrote:

    "Next year's average estimate for revenue is $2.01 billion. The average EPS estimate is $1.55."

    KORS Fiscal year ends in March '13

    And estimate is dated.

    Look for $2.60 ++ in FY14.

    Thank you Seth


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