Quiksilver Meets on the Top Line, Misses Where It Counts
Quiksilver (NYS: ZQK) reported earnings on Thursday. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended April 30 (Q2), Quiksilver met expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded slightly and GAAP loss per share dropped.
Gross margins shrank, operating margins dropped, and net margins improved.
Quiksilver booked revenue of $492.2 million. The 10 analysts polled by S&P Capital IQ predicted revenue of $495.9 million on the same basis. GAAP reported sales were 3% higher than the prior-year quarter's $478.1 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 -$0.02. The 10 earnings estimates compiled by S&P Capital IQ predicted $0.01 per share. GAAP EPS were -$0.03 for Q2 against -$0.51 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 49.2%, 560 basis points worse than the prior-year quarter. Operating margin was 3.7%, 580 basis points worse than the prior-year quarter. Net margin was -1.0%, 1,640 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $530.4 million. On the bottom line, the average EPS estimate is $0.06.
Next year's average estimate for revenue is $2.05 billion. The average EPS estimate is $0.03.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 248 members rating the stock outperform and 39 members rating it underperform. Among 59 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 49 give Quiksilver a green thumbs-up, and 10 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Quiksilver is outperform, with an average price target of $5.45.
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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. 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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