The 10-second takeaway
For the quarter ended March 31 (Q2), Destination Maternity beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased slightly and GAAP earnings per share contracted.
Gross margins dropped, operating margins improved, net margins dropped.
Destination Maternity reported revenue of $137.8 million. The two analysts polled by S&P Capital IQ hoped for revenue of $135.5 million on the same basis. GAAP reported sales were 3.0% higher than the prior-year quarter's $133.8 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 $0.38. The one earnings estimate compiled by S&P Capital IQ was at $0.32 per share. GAAP EPS of $0.38 for Q2 were 12% lower than the prior-year quarter's $0.43 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 53.5%, 190 basis points worse than the prior-year quarter. Operating margin was 6.6%, 10 basis points better than the prior-year quarter. Net margin was 3.6%, 60 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $149.1 million. On the bottom line, the average EPS estimate is $0.68.
Next year's average estimate for revenue is $555.2 million. The average EPS estimate is $1.55.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 67 members rating the stock outperform and 23 members rating it underperform. Among 27 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 24 give Destination Maternity a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Destination Maternity is outperform, with an average price target of $17.50.
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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.