The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Steven Madden beat expectations on revenues and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue grew significantly, and GAAP earnings per share increased significantly.
Margins shrank across the board.
Steven Madden logged revenue of $279.8 million. The six analysts polled by S&P Capital IQ foresaw revenue of $266.1 million on the same basis. GAAP reported sales were 74% higher than the prior-year quarter's $161 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.55. The seven earnings estimates compiled by S&P Capital IQ averaged $0.54 per share. GAAP EPS of $0.55 for Q4 were 34% higher than the prior-year quarter's $0.41 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 35.5%, 770 basis points worse than the prior-year quarter. Operating margin was 13.8%, 430 basis points worse than the prior-year quarter. Net margin was 8.5%, 240 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $246.5 million. On the bottom line, the average EPS estimate is $0.49.
Next year's average estimate for revenue is $1.19 billion. The average EPS estimate is $2.67.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 210 members rating the stock outperform and 20 members rating it underperform. Among 72 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 64 give Steven Madden a green thumbs-up, and eight give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Steven Madden is outperform, with an average price target of $46.33.
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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.