The 10-second takeaway
For the quarter ended Dec. 31 (Q1), Destination Maternity met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted slightly and GAAP earnings per share increased significantly.
Margins grew across the board.
Destination Maternity reported revenue of $135.3 million. The one analyst polled by S&P Capital IQ expected revenue of $136.0 million on the same basis. GAAP reported sales were 0.8% lower than the prior-year quarter's $136.4 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 $0.29. The one earnings estimate compiled by S&P Capital IQ predicted $0.29 per share. GAAP EPS of $0.29 for Q1 were 71% higher than the prior-year quarter's $0.17 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%, 160 basis points better than the prior-year quarter. Operating margin was 5.1%, 180 basis points better than the prior-year quarter. Net margin was 2.8%, 110 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $139.5 million. On the bottom line, the average EPS estimate is $0.48.
Next year's average estimate for revenue is $548.0 million. The average EPS estimate is $1.70.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 69 members out of 91 rating the stock outperform, and 22 members rating it underperform. Among 28 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 24 give Destination Maternity 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 Destination Maternity is buy, with an average price target of $24.00.
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