Jones Apparel Group, Inc. (NYSE:JNY) delivered a profit and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company.
Jones Apparel Group, Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased 51.61% to $0.15 in the quarter versus EPS of $0.31 in the year-earlier quarter.
Revenue: Rose 7.77% to $1.01 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Jones Apparel Group, Inc. reported adjusted EPS income of $0.15 per share. By that measure, the company missed the mean analyst estimate of $0.25. It beat the average revenue estimate of $997.43 million.
Quoting Management: Wesley R. Card, The Jones Group Chief Executive Officer, stated: “First quarter revenues were in line with our revised expectations, with the jeanswear business registering the largest improvement in operating results. For other areas of the business, the cold weather negatively impacted seasonal spring product sales and, accordingly, gross margins for the first quarter were approximately 210 basis points below last year. The domestic wholesale footwear and accessories business registered improved operating results; while the international businesses, primarily retail, were negatively impacted by economic conditions and cold weather, particularly in Europe. We expect continued margin pressure in sportswear in the second quarter, as we clear spring merchandise in anticipation of our new and refocused product offerings for fall.”
Key Stats (on next page)…
Revenue increased 3.79% from $971.9 million in the previous quarter. EPS increased 7.14% from $0.14 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 $0.26 to a profit $0.20. For the current year, the average estimate has moved down from a profit of $1.21 to a profit of $1.16 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)