The 10-second takeaway
For the quarter ended March 31 (Q1), Revlon met expectations on revenues and missed estimates on earnings per share.
Compared with the prior-year quarter, revenue contracted slightly and GAAP earnings per share dropped significantly.
Margins dropped across the board.
Revlon notched revenue of $330.7 million. The one analyst polled by S&P Capital IQ predicted revenue of $327.6 million on the same basis. GAAP reported sales were 0.8% lower than the prior-year quarter's $333.2 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 $0.17. The one earnings estimate compiled by S&P Capital IQ anticipated $0.20 per share. GAAP EPS of $0.16 for Q1 were 20% lower than the prior-year quarter's $0.20 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 64.6%, 140 basis points worse than the prior-year quarter. Operating margin was 13.0%, 40 basis points worse than the prior-year quarter. Net margin was 2.6%, 50 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $344.3 million. On the bottom line, the average EPS estimate is $0.34.
Next year's average estimate for revenue is $1.38 billion. The average EPS estimate is $1.42.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 79 members out of 170 rating the stock outperform, and 91 members rating it underperform. Among 48 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 26 give Revlon a green thumbs-up, and 22 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Revlon is buy, with an average price target of $19.00.
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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. He is the 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 don't 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.