The 10-second takeaway
For the quarter ended Jan. 31 (Q1), Quiksilver beat expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue increased, and GAAP loss per share grew.
Margins contracted across the board.
Quiksilver booked revenue of $449.6 million. The 10 analysts polled by S&P Capital IQ expected to see revenue of $437.4 million on the same basis. GAAP reported sales were 5.4% higher than the prior-year quarter's $426.5 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 -$0.13. The 10 earnings estimates compiled by S&P Capital IQ predicted -$0.10 per share on the same basis. GAAP EPS were -$0.14 for Q1 against -$0.10 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 50.7%, 170 basis points worse than the prior-year quarter. Operating margin was -0.5%, 360 basis points worse than the prior-year quarter. Net margin was -5%, 120 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $490.9 million. On the bottom line, the average EPS estimate is $0.05.
Next year's average estimate for revenue is $2.07 billion. The average EPS estimate is $0.21.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 251 members rating the stock outperform and 40 members rating it underperform. Among 67 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 57 give Quiksilver a green thumbs-up, and 10 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 $4.99.
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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.