Perry Ellis International Earnings Preview

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Perry Ellis International (NAS: PERY) didn't hit the Street's expectations last quarter, but investors hope it will rebound this quarter. The company will unveil its latest earnings on Monday. Perry Ellis is an apparel company in the United States that designs, sources, markets, and licenses products nationally and internationally.

What analysts say:

  • Buy, sell, or hold?: The majority of analysts back Perry Ellis International as a buy. But with 62.5% of analysts rating it a buy, Perry Ellis International is still below the mean analyst rating of its nearest 10 competitors, which average 67.3% buys. Analysts don't like Perry Ellis International as much as competitor Quiksilver overall. Seven out of nine analysts rate Quiksilver a buy compared to five of eight for Perry Ellis International.
  • Revenue forecasts: On average, analysts predict $229.3 million in revenue this quarter. That would represent a rise of 10.8% from the year-ago quarter.
  • Wall Street earnings expectations: The average analyst estimate is earnings of $0.37 per share. Estimates range from $0.36 to $0.38.

What our community says:
CAPS All-Stars are solidly supporting the stock, with 85% granting it an outperform rating. The greater community backs the All-Stars, as 85.8% give it a rating of outperform. Despite the majority sentiment in favor of Perry Ellis International, the stock has a middling CAPS rating of three out of five stars.

Management:
Revenue has now gone up for three straight quarters. The company's gross margin shrank by 2.4 percentage points in the last quarter. Revenue rose 23.4% while cost of sales rose 28% to $166 million from a year earlier.

Now, a look at how efficient management has been at running the business. Margins are a representation of how efficiently a company captures portions of sales dollars. Perry Ellis International's gross margins, which reflect the total sales revenue retained after costs, have been dropping year-over-year for the last three quarters. Here are Perry Ellis International's reported margins for the last four quarters:

Quarter

Q3

Q2

Q1

Q4

Gross Margin

33.2%

33.7%

33.6%

35.8%

Operating Margin

5.1%

2.6%

10.5%

6.8%

Net Margin

2.6%

0.9%

5.3%

3.7%

One final thing: If you want to keep tabs on Perry Ellis International movements, and for more analysis on the company, make sure you add it to your watchlist.

Motley Fool newsletter services have recommended buying shares of Perry Ellis International.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.

Earnings estimates provided by Zacks.

At the time this article was published

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