Jones Group Crushes Earnings Estimates

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Jones Group (NYS: JNY) reported earnings on Oct. 24. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Sep. 29 (Q3), Jones Group missed slightly on revenues and crushed expectations on earnings per share.

Compared to the prior-year quarter, revenue dropped slightly and GAAP earnings per share contracted significantly.


Gross margins shrank, operating margins grew, net margins shrank.

Revenue details
Jones Group reported revenue of $1.04 billion. The seven analysts polled by S&P Capital IQ wanted to see a top line of $1.05 billion on the same basis. GAAP reported sales were 0.7% lower than the prior-year quarter's $1.04 billion.

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 $0.57. The seven earnings estimates compiled by S&P Capital IQ anticipated $0.32 per share. GAAP EPS of $0.22 for Q3 were 55% lower than the prior-year quarter's $0.49 per share.

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 35.2%, 50 basis points worse than the prior-year quarter. Operating margin was 6.1%, 30 basis points better than the prior-year quarter. Net margin was 1.7%, 220 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $969.5 million. On the bottom line, the average EPS estimate is $0.18.

Next year's average estimate for revenue is $3.81 billion. The average EPS estimate is $1.04.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 164 members out of 206 rating the stock outperform, and 42 members rating it underperform. Among 64 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 54 give Jones Group a green thumbs-up, and 10 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Jones Group is outperform, with an average price target of $12.80.

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The article Jones Group Crushes Earnings Estimates originally appeared on Fool.com.

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. TMFDisclosureHere

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