Quiksilver Earnings: Here’s Why Investors are Not Happy Now

Quiksilver Inc. (NYSE:ZQK) had a loss 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 8.74%.

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Quiksilver Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $-0.12 in the quarter versus EPS of $-0.02 in the year-earlier quarter.

Revenue: Decreased 6.81% to $458.7 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Quiksilver Inc. reported adjusted EPS loss of $0.12 per share. By that measure, the company missed the mean analyst estimate of $0.04. It missed the average revenue estimate of $505.36 million.

Quoting Management: “We recently announced a multi-year profit improvement plan designed to enhance the performance of our three flagship brands, Quiksilver, Roxy and DC, and accelerate our path to sustained profitable growth,” said Andy Mooney, President and Chief Executive Officer of Quiksilver, Inc. “With a reorganized management structure and our new leadership team largely in place, we have begun working toward globalizing key functions and gaining efficiencies to reap the benefits of our size and scale. We believe that, over time, our new focus and structure will allow us to significantly improve profitability, working capital efficiency and competitive positioning.

Key Stats (on next page)…

Revenue increased 6.42% from $431.02 million in the previous quarter. EPS increased to $-0.12 in the quarter versus EPS of $-0.16 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 $0.10 to a profit $0.11. For the current year, the average estimate has moved down from a profit of $0.16 to a profit of $0.13 over the last ninety days.

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