Francesca’s Holdings Earnings: Here’s Why the Stock is Falling Now

Francesca’s Holdings Corp (NASDAQ:FRAN) delivered a profit and missed Wall Street’s expectations, AND 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 19.86%.

Francesca’s Holdings Corp Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 17.86% to $0.33 in the quarter versus EPS of $0.28 in the year-earlier quarter.

Revenue: Rose 17.32% to $89.6 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Francesca’s Holdings Corp reported adjusted EPS income of $0.33 per share. By that measure, the company missed the mean analyst estimate of $0.35. It missed the average revenue estimate of $94.49 million.

Quoting Management: Neill P. Davis, francesca’s Chief Executive Officer stated, “While we posted high teens increases in second quarter and year to date sales and earnings, our second quarter sales performance was softer than we anticipated. We were able to maintain strong profitability with operating income margins only modestly below the prior year levels. Our performance in the quarter reflects the anniversary of very strong rates of growth in the prior year; lower levels of customer traffic most evident in the later part of the second quarter and the lack of a dominant apparel fashion trend.”

Key Stats (on next page)…

Revenue increased 13.43% from $78.99 million in the previous quarter. EPS increased 26.92% from $0.26 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.30 and has not changed. For the current year, the average estimate has moved down from a profit of $1.30 to a profit of $1.29 over the last ninety days.

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

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