Wolverine World Wide Goes Negative

Wolverine World Wide (NYSE: WWW  ) reported earnings on Feb. 19. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 29 (Q4), Wolverine World Wide met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue grew significantly. Non-GAAP earnings per share grew. GAAP earnings per share dropped to a loss.

Gross margins increased, operating margins dropped, net margins dropped.

Revenue details
Wolverine World Wide notched revenue of $652.2 million. The 13 analysts polled by S&P Capital IQ expected a top line of $654.4 million on the same basis. GAAP reported sales were 60% higher than the prior-year quarter's $406.5 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 $0.48. The 14 earnings estimates compiled by S&P Capital IQ anticipated $0.17 per share. Non-GAAP EPS of $0.48 for Q4 were 2.1% higher than the prior-year quarter's $0.47 per share. GAAP EPS were -$0.08 for Q4 compared to $0.46 per share for the prior-year quarter.

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 37.4%, 50 basis points better than the prior-year quarter. Operating margin was 5.8%, 180 basis points worse than the prior-year quarter. Net margin was -0.6%, 630 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $651.8 million. On the bottom line, the average EPS estimate is $0.85.

Next year's average estimate for revenue is $2.73 billion. The average EPS estimate is $2.87.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 152 members out of 163 rating the stock outperform, and 11 members rating it underperform. Among 58 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 55 give Wolverine World Wide a green thumbs-up, and three give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Wolverine World Wide is hold, with an average price target of $45.67.

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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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