ANN INC Beats Expectations But Takes A Step Back Anyway (ANN)

ANN INC Beats Expectations But Takes A Step Back Anyway

ANN INC (NYSE: ANN ) reported earnings on March 8. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Feb. 2 (Q4), ANN INC met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue grew. GAAP earnings per share increased.

Gross margins grew, operating margins contracted, net margins were steady.

Revenue details
ANN INC booked revenue of $607.7 million. The 12 analysts polled by S&P Capital IQ looked for a top line of $608.1 million on the same basis. GAAP reported sales were 7.2% higher than the prior-year quarter's $566.7 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 $0.05. The 14 earnings estimates compiled by S&P Capital IQ predicted $0.01 per share. GAAP EPS of $0.05 for Q4 were 25% higher than the prior-year quarter's $0.04 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 49.1%, 20 basis points better than the prior-year quarter. Operating margin was 0.3%, 110 basis points worse than the prior-year quarter. Net margin was 0.4%, much about the same as the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $601.4 million. On the bottom line, the average EPS estimate is $0.54.

Next year's average estimate for revenue is $2.56 billion. The average EPS estimate is $2.34.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 182 members out of 265 rating the stock outperform, and 83 members rating it underperform. Among 100 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 73 give ANN INC a green thumbs-up, and 27 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 $39.79.

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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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