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

Genesco Inc. (NYSE:GCO) 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 0.19%.

Markets are at 5-year highs! Discover the best stocks to own. Click here for our fresh Feature Stock Pick now!

Genesco Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 4.08% to $0.94 in the quarter versus EPS of $0.98 in the year-earlier quarter.

Revenue: Decreased 1.46% to $591.4 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Genesco Inc. reported adjusted EPS income of $0.94 per share. By that measure, the company beat the mean analyst estimate of $0.87. It missed the average revenue estimate of $605.71 million.

Quoting Management: “Based on first quarter performance and current visibility, we remain comfortable with our previously issued guidance for adjusted Fiscal 2014 diluted earnings per share in the range of $5.57 to $5.67, a 10% to 12% increase over Fiscal 2013′s adjusted earnings per share of $5.06. Consistent with our previous guidance, these expectations do not include non-cash asset impairments and network intrusion expenses, which we estimate will be in the range of $3.4 million to $4.4 million pretax, or $0.09 to $0.12 per share, after tax, in Fiscal 2014. They also do not reflect compensation expense associated with the Schuh deferred purchase price as described above, which is currently estimated at approximately $11.5 million, or $0.49 per diluted share, for the full year. This guidance assumes a comparable sales increase in the low single digit range for the full fiscal year.” A reconciliation of the adjusted financial measures cited in the guidance to their corresponding measures as reported pursuant to U.S. Generally Accepted Accounting Principles is included in Schedule B to this press release.”

Key Stats (on next page)…

Revenue decreased 0% from $0 in the previous quarter. EPS decreased 56.48% from $2.16 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 $0.57 to a profit $0.56. For the current year, the average estimate has moved up from a profit of $5.57 to a profit of $5.58 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

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