The 10-second takeaway
For the quarter ended April 28 (Q1), Express met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share improved significantly.
Gross margins contracted, operating margins expanded, net margins expanded.
Express chalked up revenue of $496.0 million. The nine analysts polled by S&P Capital IQ expected to see revenue of $503.2 million on the same basis. GAAP reported sales were 6.1% higher than the prior-year quarter's $467.4 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 $0.47. The 10 earnings estimates compiled by S&P Capital IQ averaged $0.49 per share. GAAP EPS of $0.47 for Q1 were 21% higher than the prior-year quarter's $0.39 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 38.1%, 10 basis points worse than the prior-year quarter. Operating margin was 15.0%, 20 basis points better than the prior-year quarter. Net margin was 8.5%, 100 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $467.8 million. On the bottom line, the average EPS estimate is $0.17.
Next year's average estimate for revenue is $2.22 billion. The average EPS estimate is $1.89.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 35 members out of 40 rating the stock outperform, and five members rating it underperform. Among 11 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), eight give Express 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 Express is buy, with an average price target of $28.50.
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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.