Fossil (Nasdaq: FOSL) will try to beat its earnings estimates for the fifth consecutive quarter. The company will unveil its latest on Tuesday. Fossil is a global design, marketing and distribution company that specializes in consumer fashion accessories.

What analysts say:

  • Buy, sell, or hold?: Analysts strongly back Fossil, with seven of nine rating it a buy and the remainder rating it a hold. Analysts still rate the stock a moderate buy, but they are a bit more wary about it compared with three months ago.
  • Revenue Forecasts: On average, analysts predict $536.1 million in revenue this quarter. That would represent a rise of 29.9% from the year-ago quarter.
  • Wall Street Earnings Expectations: The average analyst estimate is earnings of $0.75 per share. Estimates range from $0.71 to $0.80.

What our community says:
CAPS All-Stars are solidly backing the stock with 93.2% awarding it an "outperform" rating. The community at large agrees with the All-Stars with 88% assigning it a rating of "outperform." Fools have embraced Fossil and haven't been shy with their opinions lately, logging 116 posts in the past 30 days. Despite the majority sentiment in favor of Fossil, the stock has a middling CAPS rating of three out of five stars.

Management:
Fossil's profit has risen year over year by an average of more than twofold.

Now let's look at how efficient management is at running the business. Traditionally, margins represent the efficiency with which companies capture portions of sales dollars. The following table shows gross, operating, and net margins over the past four quarters.

Quarter

Q1

Q4

Q3

Q2

Gross Margin

56.2%

57.1%

57.0%

57.4%

Operating Margin

17.2%

21.3%

21.2%

15.6%

Net Margin

10.4%

13.8%

13.0%

13.2%

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