The 10-second takeaway
For the quarter ended April 30 (Q2), Quiksilver missed estimates on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped. Non-GAAP loss per share grew. GAAP loss per share grew.
Margins contracted across the board.
Quiksilver recorded revenue of $458.7 million. The nine analysts polled by S&P Capital IQ looked for revenue of $505.4 million on the same basis. GAAP reported sales were 6.8% lower than the prior-year quarter's $492.2 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 -$0.12. The nine earnings estimates compiled by S&P Capital IQ forecast $0.04 per share. Non-GAAP EPS were -$0.12 for Q2 compared to -$0.02 per share for the prior-year quarter. GAAP EPS were -$0.19 for Q2 against -$0.03 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 46.0%, 320 basis points worse than the prior-year quarter. Operating margin was -1.5%, 520 basis points worse than the prior-year quarter. Net margin was -7.1%, 610 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $521.9 million. On the bottom line, the average EPS estimate is $0.07.
Next year's average estimate for revenue is $1.99 billion. The average EPS estimate is -$0.10.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 252 members out of 291 rating the stock outperform, and 39 members rating it underperform. Among 75 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 66 give Quiksilver 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 Quiksilver is outperform, with an average price target of $6.06.
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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. TMFDisclosureHere