Destination Maternity Beats on Both Top and Bottom Lines
Destination Maternity (NAS: DEST) reported earnings April 26. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q2), Destination Maternity beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased slightly and GAAP earnings per share contracted.
Gross margins dropped, operating margins improved, net margins dropped.
Destination Maternity reported revenue of $137.8 million. The two analysts polled by S&P Capital IQ hoped for revenue of $135.5 million on the same basis. GAAP reported sales were 3.0% higher than the prior-year quarter's $133.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.38. The one earnings estimate compiled by S&P Capital IQ was at $0.32 per share. GAAP EPS of $0.38 for Q2 were 12% lower than the prior-year quarter's $0.43 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 53.5%, 190 basis points worse than the prior-year quarter. Operating margin was 6.6%, 10 basis points better than the prior-year quarter. Net margin was 3.6%, 60 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $149.1 million. On the bottom line, the average EPS estimate is $0.68.
Next year's average estimate for revenue is $555.2 million. The average EPS estimate is $1.55.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 67 members rating the stock outperform and 23 members rating it underperform. Among 27 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 24 give Destination Maternity a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Destination Maternity is outperform, with an average price target of $17.50.
While many retailers continue to struggle in these tough economic time, a select few are changing the face of the business, and reaping outsized rewards. Is Destination Maternity the right stock for you? Read "The Death of Wal-Mart: The Real Cash Kings Changing the Face of Retail" and decide. Click here for instant access to this free report.
- Add Destination Maternity 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.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.