Coach Earnings: Here’s Why the Stock is Rising Now

Coach Inc. (NYSE:COH) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 12%.

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Coach Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 9.09% to $0.84 in the quarter versus EPS of $0.77 in the year-earlier quarter.

Revenue: Rose 7.09% to $1.19 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Coach Inc. reported adjusted EPS income of $0.84 per share. By that measure, the company beat the mean analyst estimate of $0.81. It beat the average revenue estimate of $1.18 billion.

Quoting Management: Lew Frankfort, Chairman and Chief Executive Officer of Coach, Inc., said, “We’re pleased with the solid results we achieved in the third quarter as well as the progress we’re making towards our transformation to a global lifestyle brand, anchored in accessories. Our results demonstrate the brand’s strength across channels, categories and geographies, and reflect the traction we’re achieving in Men’s and digital, two key initiatives. Further, the announcement today of an increase in our dividend reflects our commitment to return capital to shareholders balanced with our investment in the business.”

Key Stats (on next page)…

Revenue decreased 21.03% from $1.5 billion in the previous quarter. EPS decreased 31.71% from $1.23 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.94 to a profit $0.89. For the current year, the average estimate has moved down from a profit of $3.82 to a profit of $3.70 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)