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Fifth & Pacific Companies Meets on the Top Line, Misses Where it Counts

By Seth Jayson - Updated Apr 7, 2017 at 12:05PM

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Just the facts, Fool.

Fifth & Pacific Companies (NYSE: FNP) reported earnings on Oct. 25. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Sep. 29 (Q3), Fifth & Pacific Companies met expectations on revenues and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue shrank and GAAP loss per share dropped.

Margins grew across the board.

Revenue details
Fifth & Pacific Companies recorded revenue of $364.6 million. The four analysts polled by S&P Capital IQ expected to see sales of $367.0 million on the same basis. GAAP reported sales were 8.4% lower than the prior-year quarter's $397.8 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at -$0.05. The six earnings estimates compiled by S&P Capital IQ predicted -$0.03 per share. GAAP EPS were -$0.17 for Q3 versus -$2.25 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 55.7%, 200 basis points better than the prior-year quarter. Operating margin was -0.1%, 90 basis points better than the prior-year quarter. Net margin was -5.2%, 4,870 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $469.2 million. On the bottom line, the average EPS estimate is $0.23.

Next year's average estimate for revenue is $1.49 billion. The average EPS estimate is -$0.10.

Investor sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 224 members out of 318 rating the stock outperform, and 94 members rating it underperform. Among 119 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 85 give Fifth & Pacific Companies a green thumbs-up, and 34 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Fifth & Pacific Companies is outperform, with an average price target of $15.00.

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