The 10-second takeaway
For the quarter ended July 6 (Q2), Jones Group beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped slightly. Non-GAAP earnings per share dropped significantly. GAAP earnings per share shrank to a loss.
Margins dropped across the board.
Jones Group recorded revenue of $845.6 million. The five analysts polled by S&P Capital IQ expected to see a top line of $835.2 million on the same basis. GAAP reported sales were 1.1% lower than the prior-year quarter's $854.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
EPS came in at $0.02. The six earnings estimates compiled by S&P Capital IQ forecast -$0.12 per share. Non-GAAP EPS of $0.02 for Q2 were 91% lower than the prior-year quarter's $0.22 per share. GAAP EPS were -$0.05 for Q2 versus $0.10 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
For the quarter, gross margin was 35.6%, 260 basis points worse than the prior-year quarter. Operating margin was 1.3%, 120 basis points worse than the prior-year quarter. Net margin was -0.4%, 130 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.05 billion. On the bottom line, the average EPS estimate is $0.58.
Next year's average estimate for revenue is $3.87 billion. The average EPS estimate is $0.82.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 154 members out of 195 rating the stock outperform, and 41 members rating it underperform. Among 62 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 55 give Jones Group 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 Jones Group is hold, with an average price target of $13.30.
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