Dillard’s Earnings: Here’s Why Investors are Excited Now

Dillard’s Inc. (NYSE:DDS) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 5.24%.

Dillard’s Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 25.4% to $0.79 in the quarter versus EPS of $0.63 in the year-earlier quarter.

Revenue: Decreased 0.55% to $1.52 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Dillard’s Inc. reported adjusted EPS income of $0.79 per share. By that measure, the company beat the mean analyst estimate of $0.74. It missed the average revenue estimate of $1.54 billion.

Quoting Management: Dillard’s Chief Executive Officer, William T. Dillard, II, stated, “Following a strong start to the year, we made further progress in the second quarter. Positive comparable store sales and gross margin expansion combined with continued expense control enabled us to report another quarter of year over year improvement at Dillard’s.”

Key Stats (on next page)…

Revenue decreased 4.57% from $1.59 billion in the previous quarter. EPS decreased 67.22% from $2.41 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $1.08 to a profit $1.11. For the current year, the average estimate has moved up from a profit of $7.31 to a profit of $7.38 over the last ninety days.

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