Quiksilver Earnings Preview

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After beating estimates last quarter by $0.02, Quiksilver (NYS: ZQK) has set the standard for itself. The company will unveil its latest earnings Thursday. Quiksilver designs, produces, and distributes apparel, winter sports equipment, footwear, and accessories.

What analysts say:

  • Buy, sell, or hold?: Analysts think investors should stand pat on Quiksilver with seven of 10 analysts rating it hold. Analysts don't like Quiksilver as much as competitor Oxford Industries overall. Four out of four analysts rate Oxford Industries a buy compared with three of 10 for Quiksilver. Analysts still rate the stock a hold, but they are a bit more wary about it compared with three months ago.
  • Revenue Forecasts: On average, analysts predict $474.5 million in revenue this quarter. That would represent a rise of 7.5% from the year-ago quarter.
  • Wall Street Earnings Expectations: The average analyst estimate is earnings of $0.08 per share. Estimates range from $0.06 to $0.12.

What our community says:
CAPS All-Stars are solidly backing the stock with 84.1% assigning it an "outperform" rating. The community at large agrees with the All-Stars with 86.7% awarding it a rating of "outperform." Fools have embraced Quiksilver and haven't been shy with their opinions lately, logging 140 posts in the past 30 days. Quiksilver'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.

QuarterQ2Q1Q4Q3
Gross Margin54.8%52.4%53.5%52.3%
Operating Margin(6.1%)3.1%6.9%7.8%
Net Margin(17.4%)(3.8%)(4.5%)1.9%

For all our Quiksilver-specific analysis, including earnings and beyond, add Quiksilver to My Watchlist.

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At the time this article was published

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