The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Revlon met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank slightly and GAAP earnings per share dropped significantly.
Gross margins shrank, operating margins grew, and net margins contracted.
Revlon booked revenue of $359.8 million. The one analyst polled by S&P Capital IQ predicted revenue of $361.2 million on the same basis. GAAP reported sales were 2.5% lower than the prior-year quarter's $369.2 million.
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 $0.71. The one earnings estimate compiled by S&P Capital IQ forecast $0.59 per share on the same basis. GAAP EPS of $0.70 for Q4 were 88% lower than the prior-year quarter's $5.66 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 62.7%, 230 basis points worse than the prior-year quarter. Operating margin was 18.7%, 40 basis points better than the prior-year quarter. Net margin was 10.1%, 7,010 basis points worse than the prior-year quarter.
Next year's average estimate for revenue is $1.38 billion. The average EPS estimate is $1.42.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 81 members out of 172 rating the stock outperform, and 91 members rating it underperform. Among 53 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 30 give Revlon a green thumbs-up, and 23 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Revlon is buy, with an average price target of $20.
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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.