Fossil Beats on Revenue, Matches Expectations on EPS

Fossil (Nasdaq: FOSL  ) reported earnings on Feb. 12. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 29 (Q4), Fossil beat slightly on revenues and met 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
Fossil logged revenue of $947.7 million. The 13 analysts polled by S&P Capital IQ expected revenue of $930.0 million on the same basis. GAAP reported sales were 14% higher than the prior-year quarter's $830.8 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 $2.27. The 16 earnings estimates compiled by S&P Capital IQ anticipated $2.27 per share. GAAP EPS of $2.51 for Q4 were 34% higher than the prior-year quarter's $1.87 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 56.9%, 80 basis points better than the prior-year quarter. Operating margin was 21.6%, 50 basis points better than the prior-year quarter. Net margin was 15.9%, 170 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $658.7 million. On the bottom line, the average EPS estimate is $1.03.

Next year's average estimate for revenue is $3.16 billion. The average EPS estimate is $6.13.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 514 members out of 578 rating the stock outperform, and 64 members rating it underperform. Among 197 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 190 give Fossil a green thumbs-up, and seven 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 $98.69.

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