VF Corp. Earnings Cheat Sheet: Profit Rises Behind Revenue Boost

S&P 500 (NYSE:SPY) component VF Corporation (NYSE:VFC) reported net income above Wall Street’s expectations for the third quarter. V.F. is an apparel company that designs and manufactures or sources from independent contractors a variety of apparel and footwear for all ages.

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VF Earnings Cheat Sheet for the Third Quarter

Results: Net income for VF Corporation rose to $300.7 million ($2.69 per share) vs. $242.8 million ($2.22 per share) in the same quarter a year earlier. This marks a rise of 23.9% from the year earlier quarter.

Revenue: Rose 23.2% to $2.75 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: VFC reported adjusted net income of $2.87 per share. By that measure, the company beat the mean estimate of $2.55 per share. It beat the average revenue estimate of $2.61 billion.

Quoting Management: “The strength of VF’s diversified brand portfolio has never been more evident,” said Eric Wiseman, Chairman and Chief Executive Officer. “These results – in this environment – clearly demonstrate that VF has the right brands and strategies for strong and sustainable long-term growth. Our businesses continue to post healthy and very profitable organic growth, and the acquisition of Timberland further strengthens our portfolio with the addition of two outstanding outdoor brands.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the second quarter, net income rose 16.7% and in the first quarter, the figure rose 22.7%.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 10 cents in the second quarter, by 12 cents in the first quarter, and by 14 cents in the fourth quarter of the last fiscal year.

Revenue has risen the past four quarters. Revenue increased 15.4% to $1.84 billion in the second quarter. The figure rose 11.9% in the first quarter from the year earlier and climbed 11% in the fourth quarter of the last fiscal year from the year-ago quarter.

Looking Forward: Analysts appear increasingly optimistic about the company’s results for the next quarter. The average estimate for the fourth quarter has moved up from $2.14 a share to $2.37 over the last ninety days. The average estimate for the fiscal year has seen a bump from $7.68 per share sixty days ago to $7.91.

Competitors to Watch: Gap (NYSE:GPS), Sears Holdings (NASDAQ:SHLD), Wal-Mart (NYSE:WMT), Target (NYSE:TGT), Urban Outfitters (NASDAQ:URBN), Abercrombie & Fitch (NYSE:ANF), American Eagle Outfitters (NYSE:AEO), Aeropostale (NYSE:ARO), J.C. Penney (NYSE:JCP), Saks (NYSE:SKS), Macy’s (NYSE:M), Dillard’s (NYSE:DDS), Nordstrom (NYSE:JWN), True Religion Apparel, Inc. (NASDAQ:TRLG), Dussault Apparel Inc. (DUSS), VLOV Inc. (VLOV), Cherokee Inc. (NASDAQ:CHKE), and The Warnaco Group, Inc. (NYSE:WRC).

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(Source: Xignite Financials)