The 10-second takeaway
For the quarter ended April 30 (Q1), Movado Group met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share expanded significantly.
Margins expanded across the board.
Movado Group booked revenue of $103.7 million. The one analyst polled by S&P Capital IQ expected revenue of $103.0 million on the same basis. GAAP reported sales were 15% higher than the prior-year quarter's $89.9 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 $0.26. The two earnings estimates compiled by S&P Capital IQ predicted $0.24 per share. GAAP EPS of $0.26 for Q1 were much higher than the prior-year quarter's $0.02 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 56.9%, 280 basis points better than the prior-year quarter. Operating margin was 8.2%, 640 basis points better than the prior-year quarter. Net margin was 6.4%, 590 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $123.3 million. On the bottom line, the average EPS estimate is $0.16.
Next year's average estimate for revenue is $511.9 million. The average EPS estimate is $1.23.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 156 members out of 190 rating the stock outperform, and 34 members rating it underperform. Among 71 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 59 give Movado Group a green thumbs-up, and 12 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Movado Group is buy, with an average price target of $28.00.
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