Dillard’s Earnings: Here’s Why Shares are Down 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 down 0.03%.

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Dillard’s Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 26.98% to $2.4 in the quarter versus EPS of $1.89 in the year-earlier quarter.

Revenue: Decreased 2.16% to $1.55 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Dillard’s Inc. reported adjusted EPS income of $2.4 per share. By that measure, the company beat the mean analyst estimate of $2.09. It missed the average revenue estimate of $1.61 billion.

Quoting Management: Dillard’s Chief Executive Officer, William T. Dillard, II, stated, “We are reporting a strong start to 2013 in spite of unseasonably cool weather. Positive comparable stores sales and gross margin expansion combined with good expense control led to another quarter of record profitability at Dillard’s. We were also pleased with our strong cash flow, which enabled us to repurchase $114.7 million of Class A Common Stock.”

Key Stats (on next page)…

Revenue decreased 28.09% from $2.15 billion in the previous quarter. EPS decreased 16.38% from $2.87 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 $0.74 to a profit $0.78. For the current year, the average estimate has moved down from a profit of $7.13 to a profit of $7.11 over the last ninety days.

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