The 10-second takeaway
For the quarter ended June 30 (Q2), VF met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share grew significantly.
Gross margins increased, operating margins shrank, net margins expanded.
VF tallied revenue of $2.14 billion. The 18 analysts polled by S&P Capital IQ anticipated revenue of $2.17 billion on the same basis. GAAP reported sales were 16% higher than the prior-year quarter's $1.84 billion.
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 $1.11. The 20 earnings estimates compiled by S&P Capital IQ predicted $0.95 per share. GAAP EPS of $1.40 for Q2 were 20% higher than the prior-year quarter's $1.17 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 46.1%, 20 basis points better than the prior-year quarter. Operating margin was 7.7%, 260 basis points worse than the prior-year quarter. Net margin was 7.3%, 30 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $3.19 billion. On the bottom line, the average EPS estimate is $3.54.
Next year's average estimate for revenue is $11.03 billion. The average EPS estimate is $9.49.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 456 members out of 481 rating the stock outperform, and 25 members rating it underperform. Among 161 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 158 give VF 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 VF is outperform, with an average price target of $164.58.
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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.