The 10-second takeaway
For the quarter ended Jan. 28 (Q4), Express met expectations on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share expanded significantly.
Gross margin dropped, operating margin expanded, and net margin expanded.
Express notched revenue of $673.2 million. The 10 analysts polled by S&P Capital IQ looked for sales of $677.7 million on the same basis. GAAP reported sales were 8.3% higher than the prior-year quarter's $621.5 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 $0.70. The 12 earnings estimates compiled by S&P Capital IQ averaged $0.68 per share on the same basis. GAAP EPS of $0.68 for Q4 were 24% higher than the prior-year quarter's $0.55 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 37.2%, 2,800 basis points worse than the prior-year quarter. Operating margin was 16.2%, 140 basis points better than the prior-year quarter. Net margin was 9.0%, 120 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $501.1 million. On the bottom line, the average EPS estimate is $0.48.
Next year's average estimate for revenue is $2.25 billion. The average EPS estimate is $1.91.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 34 members out of 39 rating the stock outperform, and five members rating it underperform. Among 12 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), eight give Express 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 Express is outperform, with an average price target of $26.38.
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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.