The 10-second takeaway
For the quarter ended Dec. 31 (Q4), V.F. met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share increased significantly.
Gross margins contracted, operating margins dropped, net margins increased.
V.F. chalked up revenue of $2.91 billion. The 17 analysts polled by S&P Capital IQ foresaw a top line of $2.90 billion on the same basis. GAAP reported sales were 37% higher than the prior-year quarter's $2.13 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $2.32. The 20 earnings estimates compiled by S&P Capital IQ anticipated $2.30 per share on the same basis. GAAP EPS of $2.28 for Q4 were 365% higher than the prior-year quarter's $0.49 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 45.2%, 140 basis points worse than the prior-year quarter. Operating margin was 12.1%, 80 basis points worse than the prior-year quarter. Net margin was 8.8%, 620 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $2.44 billion. On the bottom line, the average EPS estimate is $1.88.
Next year's average estimate for revenue is $11.01 billion. The average EPS estimate is $9.37.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 440 members out of 466 rating the stock outperform, and 26 members rating it underperform. Among 178 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 174 give V.F. a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on V.F. is outperform, with an average price target of $147.47.
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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.