Quiksilver Inc. Earnings Cheat Sheet: Swing to a Profit

Quiksilver Inc. (NYSE:ZQK) climbed to a profit in the fourth quarter and beat Wall Street’s expectations in the process. Quiksilver designs, produces and distributes apparel, wintersports equipment, footwear, accessories and related products.

Investing Insights: Here’s Why Chipotle’s Stock Keeps Winning.

Quiksilver Earnings Cheat Sheet for the Fourth Quarter

Results: Reported a profit of $67.9 million (38 cents per diluted share) in the quarter. Quiksilver Inc. had a net loss of $22.1 million or a loss 14 cents per share in the year earlier quarter.

Revenue: Rose 10.1% to $545.2 million from the year earlier quarter.

Actual vs. Wall St. Expectations: ZQK beat the mean analyst estimate of 7 cents per share. It beat the average revenue estimate of $527.6 million.

Quoting Management: Robert B. McKnight, Jr., Chairman of the Board, Chief Executive Officer and President of Quiksilver, Inc., commented, “We’re pleased to report another quarter of solid financial results and we exit 2011 in great shape to deliver improved performance in 2012 in line with our long-term plans. We made investments in fiscal 2011 to deliver better products from each of our brands, but we are most encouraged by the performance of our Roxy brand, which continues to gain traction in the marketplace and whose revenue performance compared to prior periods has improved steadily in each of the past five quarters. Additionally, despite particularly challenging consumer environments in parts of Europe and Australasia, we continue to see solid growth in our emerging and developing markets around the world.”

Key Stats:

Gross margin shrank 1.6 percentage points to 51.9%. The contraction appeared to be driven by increased costs, which rose 13.9% from the year earlier quarter while revenue rose 10.1%.

Revenue has now gone up for three straight quarters. In the third quarter, revenue rose 14% to $503.3 million while the figure rose 2.1% in the second quarter from the year earlier.

The company topped expectations last quarter after falling short of forecasts in the third quarter with net income of 6 cents versus a mean estimate of net income of 8 cents per share.

Looking Forward: Analysts seem more positive about the company’s results for the next quarter than sixty days ago. The average estimate for the first quarter of the next fiscal year has moved from a loss of 3 cents a share to a loss of 2 cents over the last sixty days. The average estimate for the fiscal year has remained at 18 cents per share.

Competitors to Watch: Delta Apparel, Inc. (AMEX:DLA), Oxford Industries, Inc. (NYSE:OXM), Zuoan Fashion Ltd (NYSE:ZA), Volcom, Inc. (NASDAQ:VLCM), Superior Uniform Group, Inc. (NASDAQ:SGC), Perry Ellis Intl., Inc. (NASDAQ:PERY), American Apparel Inc. (AMEX:APP), Cherokee Inc. (NASDAQ:CHKE), Phillips-Van Heusen Corp. (NYSE:PVH), and Iconix Brand Group, Inc. (NASDAQ:ICON).

Investing Insights: Here’s Why Chipotle’s Stock Keeps Winning.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)