Iconix Brand Group Earnings: Here’s Why Shares are Up Now

Iconix Brand Group, Inc. (NASDAQ:ICON) 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 0.23%.

Iconix Brand Group, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 60% to $0.72 in the quarter versus EPS of $0.45 in the year-earlier quarter.

Revenue: Rose 22.9% to $115.1 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Iconix Brand Group, Inc. reported adjusted EPS income of $0.72 per share. By that measure, the company beat the mean analyst estimate of $0.56. It beat the average revenue estimate of $110.9 million.

Quoting Management: Neil Cole, Chairman and CEO of Iconix Brand Group, Inc. commented, “With record performance in the second quarter, we made progress on our growth initiatives driving over 20% revenue growth and 60% EPS growth. We believe the performance we have achieved year-to-date and over the past several years demonstrates the power of our business model, and over the next few years we expect to see additional growth as we continue to build our existing brands around the world and further leverage our strong balance sheet and free cash flow to add iconic brands to our portfolio and continue to enhance shareholder value through opportunistic share repurchases.”

Key Stats (on next page)…

Revenue increased 9.56% from $105.06 million in the previous quarter. EPS increased 33.33% from $0.54 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 $0.54 to a profit $0.55. For the current year, the average estimate has moved up from a profit of $2.14 to a profit of $2.15 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)