Revlon Crushes Earnings Estimates

Seth Jayson, The Motley Fool
Updated

Revlon (NYS: REV) reported earnings on Feb. 5. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended Dec. 31 (Q4), Revlon beat expectations on revenues and crushed expectations on earnings per share.

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


Margins expanded across the board.

Revenue details
 Revlon recorded revenue of $391.3 million. The one analyst polled by S&P Capital IQ expected to see a top line of $380.4 million on the same basis. GAAP reported sales were 8.8% higher than the prior-year quarter's $359.8 million.

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 $0.89. The one earnings estimate compiled by S&P Capital IQ forecast $0.73 per share. GAAP EPS of $0.89 for Q4 were 27% higher than the prior-year quarter's $0.70 per share.

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 64.4%, 170 basis points better than the prior-year quarter. Operating margin was 21.0%, 230 basis points better than the prior-year quarter. Net margin was 11.9%, 180 basis points better than the prior-year quarter.

Looking ahead

Next year's average estimate for revenue is $1.47 billion. The average EPS estimate is $1.73.

Investor sentiment
 The stock has a one-star rating (out of five) at Motley Fool CAPS, with 81 members out of 166 rating the stock outperform, and 85 members rating it underperform. Among 53 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 34 give Revlon a green thumbs-up, and 19 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Revlon is buy, with an average price target of $22.00.

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The article Revlon Crushes Earnings Estimates 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 position in any of the stocks mentioned. 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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