ANN INC Beats Up on Analysts Yet Again

Seth Jayson, The Motley Fool
Updated

ANN INC (NYS: ANN) reported earnings on March 9. Here are the numbers you need to know.

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

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

Margins dropped across the board.

Revenue details
ANN INC recorded revenue of $566.7 million. The 11 analysts polled by S&P Capital IQ expected revenue of $566.0 million on the same basis. GAAP reported sales were 10.0% higher than the prior-year quarter's $515.3 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 $0.10. The 16 earnings estimates compiled by S&P Capital IQ predicted $0.08 per share on the same basis. GAAP EPS of $0.04 for Q4 were 71% lower than the prior-year quarter's $0.14 per share.

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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 48.9%, 280 basis points worse than the prior-year quarter. Operating margin was 1.5%, 130 basis points worse than the prior-year quarter. Net margin was 0.4%, 110 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $560.1 million. On the bottom line, the average EPS estimate is $0.49.

Next year's average estimate for revenue is $2.39 billion. The average EPS estimate is $1.95.

Investor sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 178 members rating the stock outperform and 86 members rating it underperform. Among 108 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 81 give ANN INC a green thumbs-up, and 27 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on ANN INC is outperform, with an average price target of $30.71.

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At the time thisarticle was published

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