Quiksilver Meets on Revenues, Misses on EPS

Seth Jayson, The Motley Fool
Updated

Quiksilver (NYS: ZQK) reported earnings on Dec. 13. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended Oct. 31 (Q4), Quiksilver met expectations on revenues and missed estimates on earnings per share.

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


Margins shrank across the board.

Revenue details
 Quiksilver booked revenue of $559.0 million. The 11 analysts polled by S&P Capital IQ expected to see sales of $566.1 million on the same basis. GAAP reported sales were 2.5% higher than the prior-year quarter's $545.2 million.

anImage
anImage

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 $0.07. The eight earnings estimates compiled by S&P Capital IQ forecast $0.09 per share. GAAP EPS of $0.02 for Q4 were 95% lower than the prior-year quarter's $0.38 per share.

anImage
anImage

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 45.9%, 600 basis points worse than the prior-year quarter. Operating margin was 3.7%, 280 basis points worse than the prior-year quarter. Net margin was 0.8%, 1,170 basis points worse than the prior-year quarter.

Looking ahead
 Next quarter's average estimate for revenue is $464.4 million. On the bottom line, the average EPS estimate is -$0.10.

Next year's average estimate for revenue is $2.11 billion. The average EPS estimate is $0.15.

Investor sentiment
 The stock has a three-star rating (out of five) at Motley Fool CAPS, with 254 members out of 292 rating the stock outperform, and 38 members rating it underperform. Among 73 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 62 give Quiksilver a green thumbs-up, and 11 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 $4.48.

Selling to fickle consumers is a tough business for Quiksilver or anyone else in the space. But some companies are better equipped to face the future than others. In a new report, we'll give you the rundown on three companies that are setting themselves up to dominate retail. Click here for instant access to this free report.

The article Quiksilver Meets on Revenues, Misses on EPS 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 has no positions in the stocks mentioned above. 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.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Advertisement