Kid Brands Earnings Preview

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Kid Brands (NYS: KID) met its estimates last quarter, but investors hope that it will beat them this quarter. The company will unveil its latest earnings on Friday. Kid Brands, through its subsidiaries, is a designer, importer, marketer, and distributor of infant and juvenile products.

What analysts say:

  • Revenue forecasts: On average, analysts predict $71.8 million in revenue this quarter. That would represent a decline of 4.6% from the year-ago quarter.
  • Wall Street earnings expectations: The average analyst estimate is earnings of $0.13 per share.

What our community says:
CAPS All-Stars are solidly behind the stock, with 83.3% awarding it an outperform rating. The majority of the Fools agree with the All-Stars, with 65.3% giving it an outperform rating. Kid Brands' bearish CAPS rating of two out of five stars falls short of the Fool community sentiment.


Management:
Revenue has fallen for the past three quarters. The company's gross margin shrank by 2.3 percentage points in the last quarter. Revenue fell 2.3% while cost of sales rose 0.8% to $50.9 million from a year earlier.

Now, a look at how efficient management has been at running the business. Margins illustrate how efficiently a company captures portions of sales dollars. The company's gross margins have been decreasing year-over-year for the last four quarters. Gross margins reflect the total sales revenue retained after costs. See how Kid Brands has been doing for the last four quarters:

Quarter

Q3

Q2

Q1

Q4

Gross Margin

26.7%

23.8%

27.2%

21.6%

Operating Margin

3.2%

2.6%

1.5%

1.2%

Net Margin

(0.1%)

(6.6%)

(0.4%)

30.3%

For all our Kid Brands-specific analysis, including earnings and beyond, add Kid Brands to My Watchlist.

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Earnings estimates provided by Zacks.

At the time this article was published

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