Movado Group Beats Up on Analysts Yet Again

Seth Jayson, The Motley Fool
Updated

Movado Group (NYS: MOV) reported earnings on May 31. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended April 30 (Q1), Movado Group met expectations on revenues and beat expectations on earnings per share.

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


Margins expanded across the board.

Revenue details
Movado Group booked revenue of $103.7 million. The one analyst polled by S&P Capital IQ expected revenue of $103.0 million on the same basis. GAAP reported sales were 15% higher than the prior-year quarter's $89.9 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 $0.26. The two earnings estimates compiled by S&P Capital IQ predicted $0.24 per share. GAAP EPS of $0.26 for Q1 were much higher than the prior-year quarter's $0.02 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 56.9%, 280 basis points better than the prior-year quarter. Operating margin was 8.2%, 640 basis points better than the prior-year quarter. Net margin was 6.4%, 590 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $123.3 million. On the bottom line, the average EPS estimate is $0.16.

Next year's average estimate for revenue is $511.9 million. The average EPS estimate is $1.23.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 156 members out of 190 rating the stock outperform, and 34 members rating it underperform. Among 71 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 59 give Movado Group a green thumbs-up, and 12 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Movado Group is buy, with an average price target of $28.00.

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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. The Motley Fool owns shares of Movado Group. 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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