The 10-second takeaway
For the quarter ended Sep. 29 (Q3), Jones Group missed slightly on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped slightly and GAAP earnings per share contracted significantly.
Gross margins shrank, operating margins grew, net margins shrank.
Jones Group reported revenue of $1.04 billion. The seven analysts polled by S&P Capital IQ wanted to see a top line of $1.05 billion on the same basis. GAAP reported sales were 0.7% lower than the prior-year quarter's $1.04 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 $0.57. The seven earnings estimates compiled by S&P Capital IQ anticipated $0.32 per share. GAAP EPS of $0.22 for Q3 were 55% lower than the prior-year quarter's $0.49 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 35.2%, 50 basis points worse than the prior-year quarter. Operating margin was 6.1%, 30 basis points better than the prior-year quarter. Net margin was 1.7%, 220 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $969.5 million. On the bottom line, the average EPS estimate is $0.18.
Next year's average estimate for revenue is $3.81 billion. The average EPS estimate is $1.04.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 164 members out of 206 rating the stock outperform, and 42 members rating it underperform. Among 64 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 54 give Jones Group a green thumbs-up, and 10 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Jones Group is outperform, with an average price target of $12.80.
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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. TMFDisclosureHere