Kenneth Cole Productions Beats Up on Analysts Yet Again
Kenneth Cole Productions (NYS: KCP) reported earnings yesterday. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Kenneth Cole Productions beat expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share increased.
Gross margins shrank, operating margins improved, net margins grew.
Kenneth Cole Productions tallied revenue of $131.2 million. The two analysts polled by S&P Capital IQ expected to see sales of $126.5 million on the same basis. GAAP reported sales were 8.6% higher than the prior-year quarter's $120.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.49. The three earnings estimates compiled by S&P Capital IQ anticipated $0.28 per share on the same basis. GAAP EPS were $0.43 for Q4 versus -$0.15 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 41.2%, 230 basis points worse than the prior-year quarter. Operating margin was 7.4%, 380 basis points better than the prior-year quarter. Net margin was 6.1%, 830 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $125.5 million. On the bottom line, the average EPS estimate is $0.00.
Next year's average estimate for revenue is $508.3 million. The average EPS estimate is $0.74.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 44 members out of 63 rating the stock outperform, and 19 members rating it underperform. Among 18 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 11 give Kenneth Cole Productions a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Kenneth Cole Productions is outperform, with an average price target of $15.25.
With hundreds of companies like Kenneth Cole Productions 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.
- Add Kenneth Cole Productions to My Watchlist.
At the time this article 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.