The 10-second takeaway
For the quarter ended June 30 (Q2), Revlon missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted slightly. Non-GAAP earnings per share increased significantly. GAAP earnings per share increased significantly.
Gross margins shrank, operating margins grew, net margins grew.
Revlon booked revenue of $350.1 million. The one analyst polled by S&P Capital IQ expected to see sales of $358.0 million on the same basis. GAAP reported sales were 2.0% lower than the prior-year quarter's $357.1 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 $0.51. The one earnings estimate compiled by S&P Capital IQ predicted $0.48 per share. Non-GAAP EPS of $0.51 for Q2 were 55% higher than the prior-year quarter's $0.33 per share. (The prior-year quarter included $0.01 per share in earnings from discontinued operations.) GAAP EPS of $0.47 for Q2 were 124% higher than the prior-year quarter's $0.21 per share. (The prior-year quarter included $0.01 per share in earnings from discontinued operations.)
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 64.4%, 80 basis points worse than the prior-year quarter. Operating margin was 17.8%, 580 basis points better than the prior-year quarter. Net margin was 7.1%, 400 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $351.5 million. On the bottom line, the average EPS estimate is $0.34.
Next year's average estimate for revenue is $1.43 billion. The average EPS estimate is $1.75.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 80 members out of 164 rating the stock outperform, and 84 members rating it underperform. Among 53 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 37 give Revlon a green thumbs-up, and 16 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Revlon is hold, with an average price target of $25.00.
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