The 10-second takeaway
For the quarter ended April 30 (Q1), Movado Group missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased. Non-GAAP earnings per share increased. GAAP earnings per share grew significantly.
Gross margins dropped, operating margins grew, net margins increased.
Movado Group tallied revenue of $110.0 million. The one analyst polled by S&P Capital IQ looked for sales of $115.9 million on the same basis. GAAP reported sales were 6.1% higher than the prior-year quarter's $103.7 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 $0.28. The two earnings estimates compiled by S&P Capital IQ predicted $0.22 per share. Non-GAAP EPS of $0.28 for Q1 were 7.7% higher than the prior-year quarter's $0.26 per share. GAAP EPS of $0.32 for Q1 were 23% higher than the prior-year quarter's $0.26 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 54.5%, 240 basis points worse than the prior-year quarter. Operating margin was 9.1%, 90 basis points better than the prior-year quarter. Net margin was 7.5%, 110 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $131.9 million. On the bottom line, the average EPS estimate is $0.32.
Next year's average estimate for revenue is $566.6 million. The average EPS estimate is $1.82.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 166 members out of 202 rating the stock outperform, and 36 members rating it underperform. Among 74 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 64 give Movado Group a green thumbs-up, and 10 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Movado Group is buy, with an average price target of $44.50.
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Seth Jayson owned shares of the following at the time of publication: Movado Group. 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 Movado Group. 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.