Phillips-Van Heusen Earnings Preview

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Investors are on the edge of their collective seats, hoping that Phillips-Van Heusen (NYS: PVH) will top analyst expectations for the fifth consecutive quarter. The company will unveil its latest earnings Tuesday. Phillips-Van Heusen is an apparel company that designs and markets branded dress shirts, neckwear, sportswear, and, to a lesser extent, footwear, and other related products.

What analysts say:

  • Buy, sell, or hold?: Analysts strongly back Phillips-Van Heusen, with nine of 11 rating it a buy and the remainder rating it a hold. Analysts like Phillips-Van Heusen better than competitor Warnaco Group overall. While analysts still rate the stock a moderate buy, they are a little more optimistic about it compared with three months ago.
  • Revenue Forecasts: On average, analysts predict $1.28 billion in revenue this quarter. That would represent a rise of 16.4% from the year-ago quarter.
  • Wall Street Earnings Expectations: The average analyst estimate is earnings of $0.95 per share. Estimates range from $0.94 to $0.95.

What our community says:
CAPS All-Stars are solidly behind the stock with 96.4% giving it an "outperform" rating. The community at large backs the All-Stars with 90.2% granting it a rating of "outperform." Fools are bullish on Phillips-Van Heusen, though the message boards have been quiet lately with only 88 posts in the past 30 days. Phillips-Van Heusen's bearish CAPS rating of two out of five stars falls short of the Fool community sentiment.

Management:
Now let's look at how efficient management is at running the business. Traditionally, margins represent the efficiency with which companies capture portions of sales dollars. The following table shows gross, operating, and net margins over the past four quarters.

QuarterQ1Q4Q3Q2
Gross Margin53.2%52.7%52.3%52.1%
Operating Margin8.8%6.6%11.8%(4.0%)
Net Margin4.2%4.0%5.3%(4.9%)

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At the time this article was published

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