The 10-second takeaway
For the quarter ended June 30 (Q2), VF missed slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share grew. GAAP earnings per share contracted.
Gross margins increased, operating margins grew, net margins dropped.
VF reported revenue of $2.22 billion. The 20 analysts polled by S&P Capital IQ predicted a top line of $2.26 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $1.27. The 25 earnings estimates compiled by S&P Capital IQ predicted $1.17 per share. Non-GAAP EPS of $1.27 for Q2 were 14% higher than the prior-year quarter's $1.11 per share. GAAP EPS of $1.24 for Q2 were 11% lower than the prior-year quarter's $1.40 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 48.5%, 240 basis points better than the prior-year quarter. Operating margin was 9.1%, 140 basis points better than the prior-year quarter. Net margin was 6.2%, 110 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $3.34 billion. On the bottom line, the average EPS estimate is $3.83.
Next year's average estimate for revenue is $11.51 billion. The average EPS estimate is $10.86.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 488 members out of 510 rating the stock outperform, and 22 members rating it underperform. Among 179 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 177 give VF a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on VF is outperform, with an average price target of $198.50.
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