Zumiez Beats on the Top Line

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Zumiez (NAS: ZUMZ) reported earnings on March 13. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Jan. 29 (Q4), Zumiez met expectations on revenues and met expectations on earnings per share.

Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share grew significantly.

Margins increased across the board.

Revenue details
Zumiez reported revenue of $183.9 million. The 14 analysts polled by S&P Capital IQ expected revenue of $183.2 million on the same basis. GAAP reported sales were 18% higher than the prior-year quarter's $156.2 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
EPS came in at $0.60. The 16 earnings estimates compiled by S&P Capital IQ predicted $0.60 per share. GAAP EPS of $0.60 for Q4 were 22% higher than the prior-year quarter's $0.49 per share.

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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 38.5%, 240 basis points better than the prior-year quarter. Operating margin was 17.0%, 480 basis points better than the prior-year quarter. Net margin was 10.2%, 60 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $123.8 million. On the bottom line, the average EPS estimate is $0.09.

Next year's average estimate for revenue is $633.8 million. The average EPS estimate is $1.44.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 723 members out of 792 rating the stock outperform, and 69 members rating it underperform. Among 309 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 291 give Zumiez a green thumbs-up, and 18 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Zumiez is outperform, with an average price target of $30.49.

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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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