Coach Earnings Are on Deck

Seth Jayson, The Motley Fool
Updated

Coach (NYS: COH) is expected to report Q1 earnings around Oct. 16. Here's what Wall Street wants to see:

The 10-second takeaway
 Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Coach's revenues will grow 10.4% and EPS will grow 2.7%.

The average estimate for revenue is $1.16 billion. On the bottom line, the average EPS estimate is $0.75.


Revenue details
 Last quarter, Coach booked revenue of $1.16 billion. GAAP reported sales were 12% higher than the prior-year quarter's $1.03 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
 Last quarter, EPS came in at $0.86. GAAP EPS of $0.86 for Q4 were 26% higher than the prior-year quarter's $0.68 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
 For the preceding quarter, gross margin was 72.6%, 80 basis points better than the prior-year quarter. Operating margin was 30.4%, 10 basis points better than the prior-year quarter. Net margin was 21.8%, 220 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $5.32 billion. The average EPS estimate is $3.85.

Investor sentiment
 The stock has a four-star rating (out of five) at Motley Fool CAPS, with 2,542 members out of 2,719 rating the stock outperform, and 177 members rating it underperform. Among 791 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 754 give Coach a green thumbs-up, and 37 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Coach is outperform, with an average price target of $79.45.

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The article Coach Earnings Are on Deck originally appeared on Fool.com.

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 Coach. Motley Fool newsletter services recommend Coach. 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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