The 10-second takeaway
For the quarter ended Oct. 27 (Q3), Dillard's beat expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share contracted significantly.
Gross margins grew, operating margins grew, net margins dropped.
Dillard's booked revenue of $1.49 billion. The two analysts polled by S&P Capital IQ expected a top line of $1.44 billion on the same basis. GAAP reported sales were 4.9% higher than the prior-year quarter's $1.42 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 $0.99. The two earnings estimates compiled by S&P Capital IQ averaged $0.69 per share. GAAP EPS of $1.01 for Q3 were 77% lower than the prior-year quarter's $4.31 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 38.1%, 20 basis points better than the prior-year quarter. Operating margin was 6.0%, 210 basis points better than the prior-year quarter. Net margin was 3.3%, 1,280 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $2.15 billion. On the bottom line, the average EPS estimate is $2.87.
Next year's average estimate for revenue is $6.70 billion. The average EPS estimate is $6.30.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 154 members out of 394 rating the stock outperform, and 240 members rating it underperform. Among 132 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 60 give Dillard's a green thumbs-up, and 72 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Dillard's is outperform, with an average price target of $81.33.
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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. The Motley Fool owns shares of Dillard's. 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.