ANN Earnings Preview

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Investors are on the edge of their collective seats, hoping that ANN (NYS: ANN) will top analyst expectations for the fourth consecutive quarter. The company will unveil its latest earnings on Friday. Ann offers a range of career and casual separates, dresses, tops, weekend wear, shoes, and accessories to provide modern styles that are versatile across all occasions and needs.

What analysts say:

  • Buy, sell, or hold?: Analysts think investors should stand pat on ANN with eight of 15 analysts rating it hold. Analysts don't like ANN as much as competitor Chico's FAS overall. Nine out of 19 analysts rate Chico's FAS a buy compared to seven of 15 for ANN. While analysts still rate the stock a hold, they are a little more optimistic about it compared to three months ago.
  • Revenue forecasts: On average, analysts predict $566.8 million in revenue this quarter. That would represent a rise of 12.2% from the year-ago quarter.
  • Wall Street earnings expectations: The average analyst estimate is earnings of $0.57 per share. Estimates range from $0.49 to $0.59.

What our community says:
The majority of CAPS All-Stars see ANN as a good bet, with 72.9% assigning it an outperform rating. The majority of the Fools are in agreement with the All-Stars as 69.2% give it an outperform rating. Fools are bullish on ANN and haven't been shy with their opinions lately, logging 148 posts in the past 30 days. ANN's bearish CAPS rating of two out of five stars falls short of the Fool community sentiment.

Management:
Revenue has now gone up for three straight quarters.

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.

Quarter

Q2

Q1

Q4

Q3

Gross Margin

55%

57.3%

51.7%

57.2%

Operating Margin

7.5%

8.8%

2.0%

8.1%

Net Margin

4.4%

5.2%

1.5%

4.8%

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Earnings estimates provided by Zacks

At the time this article was published

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