The 10-second takeaway
For the quarter ended Oct. 31 (Q4), Quiksilver beat expectations on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue increased, and earnings per share dropped significantly.
Gross margins shrank, operating margins shrank, and net margins improved.
Quiksilver notched revenue of $545 million. The 10 analysts polled by S&P Capital IQ anticipated a top line of $528 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.06. The 10 earnings estimates compiled by S&P Capital IQ averaged $0.07 per share on the same basis. GAAP EPS were $0.38 for Q4 compared to -$0.14 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 51.9%, 160 basis points worse than the prior-year quarter. Operating margin was 6.5%, 280 basis points worse than the prior-year quarter. Net margin was 12.5%, 1,700 basis points better than the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods.
What does the future hold?
Next quarter's average estimate for revenue is $437 million. On the bottom line, the average EPS estimate is -$0.12 (There are eight revenue estimates and three EPS estimates.)
For the full year ending 2012, the average estimate for revenue is $2.1 billion. The average EPS estimate is $.24. (There are nine revenue estimates and eight EPS estimates.)
The stock has a two-star rating out of five at Motley Fool CAPS, with 249 members out of 286 rating the stock outperform and 37 members rating it underperform. Among 65 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 52 give Quiksilver a green thumbs-up, and 13 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Quiksilver is outperform, with an average price target of $4.79.
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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. 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.