Wolverine World Wide Beats Analyst Estimates on EPS

Wolverine World Wide (NYSE: WWW  ) reported earnings on July 9. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 15 (Q2), 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 dropped. GAAP earnings per share contracted.

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

Revenue details
Wolverine World Wide booked revenue of $587.8 million. The 11 analysts polled by S&P Capital IQ looked for revenue of $591.0 million on the same basis. GAAP reported sales were 88% higher than the prior-year quarter's $312.7 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 $0.46. The 13 earnings estimates compiled by S&P Capital IQ anticipated $0.34 per share. Non-GAAP EPS of $0.46 for Q2 were 4.2% lower than the prior-year quarter's $0.48 per share. GAAP EPS of $0.36 for Q2 were 14% lower than the prior-year quarter's $0.42 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 41.0%, 320 basis points better than the prior-year quarter. Operating margin was 7.6%, 130 basis points worse than the prior-year quarter. Net margin was 3.0%, 360 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $711.2 million. On the bottom line, the average EPS estimate is $1.01.

Next year's average estimate for revenue is $2.74 billion. The average EPS estimate is $2.70.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 153 members out of 164 rating the stock outperform, and 11 members rating it underperform. Among 61 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 60 give Wolverine World Wide a green thumbs-up, and one 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 $49.09.

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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 July 10, 2013, at 2:51 PM, InvestingGuy681 wrote:

    $260MM in additional revenue over Q2 '12 and $2MM less net income. Debt service and higher tax rate is negating all the revenue gains. It will take at least four years to service the LT debt. In the mean time earnings will suffer. #inforthelonghaul

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