Collective Brands Beats Up on Analysts Yet Again

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Collective Brands (NYS: PSS) reported earnings on Feb. 28. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Jan. 28 (Q4), Collective Brands beat expectations on revenues and exceeded expectations on earnings per share.

Compared to the prior-year quarter, revenue improved and GAAP loss per share expanded.

Margins dropped across the board.

Revenue details
Collective Brands reported revenue of $815.9 million. The seven analysts polled by S&P Capital IQ predicted revenue of $782.3 million on the same basis. GAAP reported sales were 5.4% higher than the prior-year quarter's $773.8 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Non-GAAP EPS came in at -$0.61. The seven earnings estimates compiled by S&P Capital IQ forecast -$0.78 per share on the same basis. GAAP EPS were -$0.69 for Q4 compared to -$0.17 per share for the prior-year quarter.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 27.9%, 510 basis points worse than the prior-year quarter. Operating margin was -2.7%, 420 basis points worse than the prior-year quarter. Net margin was -5.1%, 380 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $865.0 million. On the bottom line, the average EPS estimate is $0.46.

Next year's average estimate for revenue is $3.49 billion. The average EPS estimate is $1.00.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 167 members out of 194 rating the stock outperform, and 27 members rating it underperform. Among 49 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 46 give Collective Brands a green thumbs-up, and three give it a red thumbs-down.

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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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