The 10-second takeaway
For the quarter ended March 30 (Q1), Fossil beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly. Non-GAAP earnings per share grew significantly. GAAP earnings per share increased significantly.
Gross margins contracted, operating margins dropped, net margins increased.
Fossil recorded revenue of $680.9 million. The 14 analysts polled by S&P Capital IQ expected revenue of $651.9 million on the same basis. GAAP reported sales were 15% higher than the prior-year quarter's $589.5 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 $1.08. The 16 earnings estimates compiled by S&P Capital IQ forecast $0.97 per share. Non-GAAP EPS of $1.08 for Q1 were 16% higher than the prior-year quarter's $0.93 per share. GAAP EPS of $1.21 for Q1 were 30% higher than the prior-year quarter's $0.93 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 55.6%, 20 basis points worse than the prior-year quarter. Operating margin was 13.8%, 30 basis points worse than the prior-year quarter. Net margin was 10.6%, 70 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $700.6 million. On the bottom line, the average EPS estimate is $1.05.
Next year's average estimate for revenue is $3.16 billion. The average EPS estimate is $6.09.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 520 members out of 585 rating the stock outperform, and 65 members rating it underperform. Among 174 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 165 give Fossil a green thumbs-up, and nine 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 $111.92.
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