Ralph Lauren (NYSE: RL) is expected to report Q2 earnings on Oct. 31. Here's what Wall Street wants to see:
The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Ralph Lauren's revenues will wither -3.6% and EPS will wither -11.4%.
The average estimate for revenue is $1.84 billion. On the bottom line, the average EPS estimate is $2.18.
Revenue details
Last quarter, Ralph Lauren tallied revenue of $1.59 billion. GAAP reported sales were 4.4% higher than the prior-year quarter's $1.53 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
Last quarter, EPS came in at $2.03. GAAP EPS of $2.03 for Q1 were 6.8% higher than the prior-year quarter's $1.90 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Recent performance
For the preceding quarter, gross margin was 62.3%, 70 basis points worse than the prior-year quarter. Operating margin was 18.3%, 20 basis points worse than the prior-year quarter. Net margin was 12.1%, about the same as the prior-year quarter.
Looking ahead
The full year's average estimate for revenue is $7.15 billion. The average EPS estimate is $7.88.
Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 364 members out of 450 rating the stock outperform, and 86 members rating it underperform. Among 123 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 104 give Ralph Lauren a green thumbs-up, and 19 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Ralph Lauren is outperform, with an average price target of $173.71.
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