Rocky Brands Earnings: Here’s Why the Stock is Up Now

Rocky Brands, Inc. (NASDAQ:RCKY) delivered a profit 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 up 1.26%.

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Rocky Brands, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 20% to $0.12 in the quarter versus EPS of $0.10 in the year-earlier quarter.

Revenue: Rose 0.69% to $53.7 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Rocky Brands, Inc. reported adjusted EPS income of $0.12 per share. By that measure, the company missed the mean analyst estimate of $0.14. It missed the average revenue estimate of $57.59 million.

Quoting Management: David Sharp, President and Chief Executive Officer, commented, “The year is off to a solid start highlighted by improvements in gross margin and net income. Sales continue to be driven by Durango as the brand’s western and lifestyle collections collectively were up 40% in the first quarter. In addition, increased Military sales combined with the initial shipments of our new private label program helped to offset softness in our work and commercial military categories. We are cautiously optimistic that we can generate improved top-line performance as the year progresses, which along with enhanced gross margins should result in a meaningful increase in annual profitability.”

Key Stats (on next page)…

Revenue decreased 7.48% from $58.04 million in the previous quarter. EPS decreased 64.71% from $0.34 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 loss of $0 to a profit $0.17. For the current year, the average estimate has moved down from a profit of $1.63 to a profit of $1.48 over the last ninety days.

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