The 10-second takeaway
For the quarter ended July 28 (Q2), Francesca's Holdings beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share expanded significantly.
Margins increased across the board.
Francesca's Holdings logged revenue of $76.4 million. The 11 analysts polled by S&P Capital IQ expected to see sales of $71.1 million on the same basis. GAAP reported sales were 49% higher than the prior-year quarter's $51.2 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 $0.28. The 11 earnings estimates compiled by S&P Capital IQ predicted $0.24 per share. GAAP EPS of $0.28 for Q2 were 115% higher than the prior-year quarter's $0.13 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 54.8%, 210 basis points better than the prior-year quarter. Operating margin was 27.3%, 270 basis points better than the prior-year quarter. Net margin was 16.6%, 590 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $67.0 million. On the bottom line, the average EPS estimate is $0.19.
Next year's average estimate for revenue is $282.0 million. The average EPS estimate is $0.91.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 33 members out of 37 rating the stock outperform, and four members rating it underperform. Among nine CAPS All-Star picks (recommendations by the highest-ranked CAPS members), six give Francesca's Holdings 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 Francesca's Holdings is outperform, with an average price target of $35.56.
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