The 10-second takeaway
For the quarter ended Sep. 29 (Q3), Fossil missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share grew significantly.
Gross margins dropped, operating margins dropped, net margins expanded.
Fossil logged revenue of $684.2 million. The 13 analysts polled by S&P Capital IQ anticipated sales of $713.1 million on the same basis. GAAP reported sales were 6.4% higher than the prior-year quarter's $642.9 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 $1.28. The 15 earnings estimates compiled by S&P Capital IQ forecast $1.17 per share. GAAP EPS of $1.26 for Q3 were 16% higher than the prior-year quarter's $1.09 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 55.8%, 10 basis points worse than the prior-year quarter. Operating margin was 16.5%, 200 basis points worse than the prior-year quarter. Net margin was 11.2%, 40 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $959.4 million. On the bottom line, the average EPS estimate is $2.28.
Next year's average estimate for revenue is $2.90 billion. The average EPS estimate is $5.30.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 523 members out of 589 rating the stock outperform, and 66 members rating it underperform. Among 172 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 165 give Fossil a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Fossil is outperform, with an average price target of $101.73.
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Seth Jayson owned shares of the following at the time of publication: Fossil. 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. The Motley Fool owns shares of Fossil. Motley Fool newsletter services recommend Fossil. 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.