The 10-second takeaway
For the quarter ended Oct. 27 (Q3), Francesca's Holdings beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share increased significantly.
Margins grew across the board.
Francesca's Holdings logged revenue of $72.0 million. The 13 analysts polled by S&P Capital IQ anticipated a top line of $71.3 million on the same basis. GAAP reported sales were 44% higher than the prior-year quarter's $50.0 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 $0.24. The 13 earnings estimates compiled by S&P Capital IQ anticipated $0.22 per share. GAAP EPS of $0.24 for Q3 were 118% higher than the prior-year quarter's $0.11 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 52.6%, 100 basis points better than the prior-year quarter. Operating margin was 24.6%, 850 basis points better than the prior-year quarter. Net margin was 15.0%, 550 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $86.8 million. On the bottom line, the average EPS estimate is $0.31.
Next year's average estimate for revenue is $303.4 million. The average EPS estimate is $1.05.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 50 members out of 56 rating the stock outperform, and six members rating it underperform. Among 12 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), eight give Francesca's Holdings a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Francesca's Holdings is outperform, with an average price target of $38.50.
Is Francesca's Holdings the right retailer for your portfolio? Learn how to maximize your investment income and "Secure Your Future With 9 Rock-Solid Dividend Stocks," including one above-average retailing powerhouse. Click here for instant access to this free report.
- Add Francesca's Holdings to My Watchlist.
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 has no positions in the stocks mentioned above. 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.