Steven Madden Beats on the Top Line

Seth Jayson, The Motley Fool
Updated

Steven Madden (NAS: SHOO) reported earnings on May 3. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended March 31 (Q1), Steven Madden beat expectations on revenues and met expectations on earnings per share.

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


Margins shrank across the board.

Revenue details
 Steven Madden notched revenue of $266.0 million. The eight analysts polled by S&P Capital IQ predicted sales of $250.0 million on the same basis. GAAP reported sales were 60% higher than the prior-year quarter's $165.8 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
 EPS came in at $0.50. The nine earnings estimates compiled by S&P Capital IQ predicted $0.50 per share. GAAP EPS of $0.50 for Q1 were 19% higher than the prior-year quarter's $0.42 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 36.1%, 560 basis points worse than the prior-year quarter. Operating margin was 13.3%, 330 basis points worse than the prior-year quarter. Net margin was 8.2%, 260 basis points worse than the prior-year quarter.

Looking ahead
 Next quarter's average estimate for revenue is $280.4 million. On the bottom line, the average EPS estimate is $0.60.

Next year's average estimate for revenue is $1.19 billion. The average EPS estimate is $2.67.

Investor sentiment
 The stock has a four-star rating (out of five) at Motley Fool CAPS, with 209 members out of 229 rating the stock outperform, and 20 members rating it underperform. Among 66 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 59 give Steven Madden 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 Steven Madden is outperform, with an average price target of $49.86.

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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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