Quiksilver Whiffs on Earnings

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Quiksilver (NYS: ZQK) reported earnings Dec. 15. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Oct. 31 (Q4), Quiksilver beat expectations on revenues and whiffed on earnings per share.

Compared to the prior-year quarter, revenue increased, and earnings per share dropped significantly.

Gross margins shrank, operating margins shrank, and net margins improved.

Revenue details
Quiksilver notched revenue of $545 million. The 10 analysts polled by S&P Capital IQ anticipated a top line of $528 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
Non-GAAP EPS came in at $0.06. The 10 earnings estimates compiled by S&P Capital IQ averaged $0.07 per share on the same basis. GAAP EPS were $0.38 for Q4 compared to -$0.14 per share for the prior-year quarter.

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Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 51.9%, 160 basis points worse than the prior-year quarter. Operating margin was 6.5%, 280 basis points worse than the prior-year quarter. Net margin was 12.5%, 1,700 basis points better than the prior-year quarter.

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Source: S&P Capital IQ. Quarterly periods.

Looking ahead
What does the future hold?

Next quarter's average estimate for revenue is $437 million. On the bottom line, the average EPS estimate is -$0.12 (There are eight revenue estimates and three EPS estimates.)

For the full year ending 2012, the average estimate for revenue is $2.1 billion. The average EPS estimate is $.24. (There are nine revenue estimates and eight EPS estimates.)

Investor sentiment
The stock has a two-star rating out of five at Motley Fool CAPS, with 249 members out of 286 rating the stock outperform and 37 members rating it underperform. Among 65 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 52 give Quiksilver a green thumbs-up, and 13 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Quiksilver is outperform, with an average price target of $4.79.

At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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