Collective Brands Beats Up on Analysts Yet Again

Seth Jayson, The Motley Fool
Updated

Collective Brands (NYS: PSS) reported earnings on Feb. 28. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Jan. 28 (Q4), Collective Brands beat expectations on revenues and exceeded expectations on earnings per share.

Compared to the prior-year quarter, revenue improved and GAAP loss per share expanded.

Margins dropped across the board.

Revenue details
Collective Brands reported revenue of $815.9 million. The seven analysts polled by S&P Capital IQ predicted revenue of $782.3 million on the same basis. GAAP reported sales were 5.4% higher than the prior-year quarter's $773.8 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
Non-GAAP EPS came in at -$0.61. The seven earnings estimates compiled by S&P Capital IQ forecast -$0.78 per share on the same basis. GAAP EPS were -$0.69 for Q4 compared to -$0.17 per share for the prior-year quarter.

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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 27.9%, 510 basis points worse than the prior-year quarter. Operating margin was -2.7%, 420 basis points worse than the prior-year quarter. Net margin was -5.1%, 380 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $865.0 million. On the bottom line, the average EPS estimate is $0.46.

Next year's average estimate for revenue is $3.49 billion. The average EPS estimate is $1.00.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 167 members out of 194 rating the stock outperform, and 27 members rating it underperform. Among 49 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 46 give Collective Brands a green thumbs-up, and three give it a red thumbs-down.

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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.

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