The 10-second takeaway
For the quarter ended Dec. 29 (Q4), Fossil beat slightly on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share grew significantly.
Margins expanded across the board.
Fossil logged revenue of $947.7 million. The 13 analysts polled by S&P Capital IQ expected revenue of $930.0 million on the same basis. GAAP reported sales were 14% higher than the prior-year quarter's $830.8 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 $2.27. The 16 earnings estimates compiled by S&P Capital IQ anticipated $2.27 per share. GAAP EPS of $2.51 for Q4 were 34% higher than the prior-year quarter's $1.87 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 56.9%, 80 basis points better than the prior-year quarter. Operating margin was 21.6%, 50 basis points better than the prior-year quarter. Net margin was 15.9%, 170 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $658.7 million. On the bottom line, the average EPS estimate is $1.03.
Next year's average estimate for revenue is $3.16 billion. The average EPS estimate is $6.13.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 514 members out of 578 rating the stock outperform, and 64 members rating it underperform. Among 197 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 190 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 $98.69.
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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 recommends Fossil. The Motley Fool owns shares of 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.