Phillips-Van Heusen Earnings Preview

Before you go, we thought you'd like these...
Before you go close icon

Watch Phillips-Van Heusen's (NYS: PVH) earnings report to see if it can beat analyst expectations for the fifth consecutive quarter. The company will unveil its latest earnings on Tuesday. Phillips Van Heusen is an apparel company that designs and markets branded dress shirts, neckwear, and sportswear.

What analysts say:

  • Buy, sell, or hold?: Analysts strongly back Phillips-Van Heusen, with seven of 10 rating it a buy and the remainder rating it a hold. Analysts like Phillips-Van Heusen better than competitor Warnaco Group overall. Analysts still rate the stock a moderate buy, but they are a bit more wary about it compared to three months ago.
  • Revenue forecasts: On average, analysts predict $1.5 billion in revenue this quarter. That would represent a rise of 7.1% from the year-ago quarter.
  • Wall Street earnings expectations: The average analyst estimate is earnings of $1.09 per share. Estimates range from $1.05 to $1.10.

What our community says:
CAPS All-Stars are in strong support of the stock, with 97.8% awarding it an outperform rating. Most of the community concurs with the All-Stars, with 89.8% granting it a rating of outperform. Despite the majority sentiment in favor of Phillips-Van Heusen, 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 2.2 percentage points in the last quarter. Revenue rose 9.1% while cost of sales rose 14.1% to $825.2 million from a year earlier.

Now let's get some insight into how efficient management is at running the business. Margins are a representation of how efficiently a company captures portions of sales dollars. Phillips-Van Heusen has seen increasing operating margins year-over-year for the last three quarters. Operating margins reflect the total sales revenue that the company retains after costs. Here are Phillips-Van Heusen's reported margins for the last four quarters:

Quarter

Q3

Q2

Q1

Q4

Gross Margin

50.1%

54.3%

53.2%

52.7%

Operating Margin

11.9%

10.0%

8.8%

6.6%

Net Margin

6.8%

5.0%

4.2%

4.0%

We can help you keep tabs on your companies with My Watchlist, our free, personalized service. Add Phillips-Van Heusen now.

The Motley Fool has a disclosure policy.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.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

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners