Fossil Beats on Both Top and Bottom Lines

Seth Jayson, The Motley Fool
Updated

Fossil (NAS: FOSL) reported earnings on May 7. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended March 30 (Q1), Fossil beat expectations on revenues and beat expectations on earnings per share.

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


Gross margins contracted, operating margins dropped, net margins increased.

Revenue details
 Fossil recorded revenue of $680.9 million. The 14 analysts polled by S&P Capital IQ expected revenue of $651.9 million on the same basis. GAAP reported sales were 15% higher than the prior-year quarter's $589.5 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 $1.08. The 16 earnings estimates compiled by S&P Capital IQ forecast $0.97 per share. Non-GAAP EPS of $1.08 for Q1 were 16% higher than the prior-year quarter's $0.93 per share. GAAP EPS of $1.21 for Q1 were 30% higher than the prior-year quarter's $0.93 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 55.6%, 20 basis points worse than the prior-year quarter. Operating margin was 13.8%, 30 basis points worse than the prior-year quarter. Net margin was 10.6%, 70 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
 Next quarter's average estimate for revenue is $700.6 million. On the bottom line, the average EPS estimate is $1.05.

Next year's average estimate for revenue is $3.16 billion. The average EPS estimate is $6.09.

Investor sentiment
 The stock has a four-star rating (out of five) at Motley Fool CAPS, with 520 members out of 585 rating the stock outperform, and 65 members rating it underperform. Among 174 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 165 give Fossil a green thumbs-up, and nine give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Fossil is outperform, with an average price target of $111.92.

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The article Fossil Beats on Both Top and Bottom Lines originally appeared on Fool.com.

Seth Jayson owned shares of the following at the time of publication: Fossil. 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 recommends Fossil. The Motley Fool owns shares of Fossil. 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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