ANN INC Beats Up on Analysts Yet Again

Seth Jayson, The Motley Fool
Updated

ANN INC (NYS: ANN) reported earnings on May 18. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended April 28 (Q1), ANN INC met expectations on revenue and beat expectations on earnings per share.

Compared to the prior-year quarter, both revenue and GAAP earnings per share increased.


Margins contracted across the board.

Revenue details
ANN INC tallied revenue of $560.4 million. The 10 analysts polled by S&P Capital IQ wanted to see revenue of $559.2 million on the same basis. GAAP-reported sales were 7% higher than the prior-year quarter's $523.6 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 $0.58. The 13 earnings estimates compiled by S&P Capital IQ predicted $0.51 per share. GAAP EPS of $0.58 for Q1 were 14% higher than the prior-year quarter's $0.51 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 56.6%, 70 basis points worse than the prior-year quarter. Operating margin was 8.1%, 70 basis points worse than the prior-year quarter. Net margin was 5.1%, 10 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $590.5 million. On the bottom line, the average EPS estimate is $0.52.

Next year's average estimate for revenue is $2.38 billion. The average EPS estimate is $2.08.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 175 members rating the stock outperform, and 82 members rating it underperform. Among 89 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 64 give ANN INC a green thumbs-up, and 25 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 $30.20.

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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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