V.F. Beats Analyst Estimates on EPS

Seth Jayson, The Motley Fool
Updated

V.F. (NYS: VFC) reported earnings on Feb. 16. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), V.F. met expectations on revenues and beat expectations on earnings per share.

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

Gross margins contracted, operating margins dropped, net margins increased.

Revenue details
V.F. chalked up revenue of $2.91 billion. The 17 analysts polled by S&P Capital IQ foresaw a top line of $2.90 billion on the same basis. GAAP reported sales were 37% higher than the prior-year quarter's $2.13 billion.

anImage
anImage

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Non-GAAP EPS came in at $2.32. The 20 earnings estimates compiled by S&P Capital IQ anticipated $2.30 per share on the same basis. GAAP EPS of $2.28 for Q4 were 365% higher than the prior-year quarter's $0.49 per share.

anImage
anImage

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 45.2%, 140 basis points worse than the prior-year quarter. Operating margin was 12.1%, 80 basis points worse than the prior-year quarter. Net margin was 8.8%, 620 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $2.44 billion. On the bottom line, the average EPS estimate is $1.88.

Next year's average estimate for revenue is $11.01 billion. The average EPS estimate is $9.37.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 440 members out of 466 rating the stock outperform, and 26 members rating it underperform. Among 178 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 174 give V.F. a green thumbs-up, and four give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on V.F. is outperform, with an average price target of $147.47.

With hundreds of companies like V.F. competing for shoppers' limited dollars, strong brands matter. Household names can provide growth for even boring, mature companies -- as long as you choose the right ones. Learn about a few who have what it takes in "3 American Companies Set to Dominate the World." Click here for instant access to this free report.

At the time thisarticle 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.

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

Advertisement