The 10-second takeaway
For the quarter ended March 31 (Q1), Deckers Outdoor met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share dropped significantly.
Margins dropped across the board.
Deckers Outdoor reported revenue of $246.3 million. The 15 analysts polled by S&P Capital IQ foresaw sales of $246.2 million on the same basis. GAAP reported sales were 20% higher than the prior-year quarter's $204.9 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 $0.20. The 16 earnings estimates compiled by S&P Capital IQ averaged $0.25 per share. GAAP EPS of $0.20 for Q1 were 59% lower 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 46.0%, 400 basis points worse than the prior-year quarter. Operating margin was 4.8%, 900 basis points worse than the prior-year quarter. Net margin was 3.2%, 620 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $179.9 million. On the bottom line, the average EPS estimate is -$0.60.
Next year's average estimate for revenue is $1.59 billion. The average EPS estimate is $4.57.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 720 members rating the stock outperform and 128 members rating it underperform. Among 232 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 199 give Deckers Outdoor a green thumbs-up, and 33 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Deckers Outdoor is outperform, with an average price target of $100.19.
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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.