Perry Ellis International Beats Estimates but Has a Big Earnings Drop
Perry Ellis International (NAS: PERY) reported earnings yesterday. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Jan. 28 (Q4), Perry Ellis International met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP earnings per share dropped significantly.
Margins shrank across the board.
Perry Ellis International booked revenue of $229.4 million. The five analysts polled by S&P Capital IQ foresaw revenue of $229.4 million on the same basis. GAAP reported sales were 11% higher than the prior-year quarter's $206.9 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 $0.38. The five earnings estimates compiled by S&P Capital IQ forecast $0.37 per share on the same basis. GAAP EPS of $0.12 for Q4 were 78% lower than the prior-year quarter's $0.54 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 31.4%, 440 basis points worse than the prior-year quarter. Operating margin was 5.6%, 240 basis points worse than the prior-year quarter. Net margin was 0.8%, 290 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $293.0 million. On the bottom line, the average EPS estimate is $0.97.
Next year's average estimate for revenue is $1.03 billion. The average EPS estimate is $1.98.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 106 members out of 124 rating the stock outperform, and 18 members rating it underperform. Among 39 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 32 give Perry Ellis International 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 Perry Ellis International is outperform, with an average price target of $22.88.
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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. Motley Fool newsletter services own shares of Perry Ellis International. The Motley Fool has a disclosure policy.
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