VF Corp. Earnings: Increased Profit Helps Beat Earnings Estimates
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 Corporation Earnings Cheat Sheet
Results: Net income for the textile-apparel rose to $381.3 million ($3.42 per share) vs. $300.7 million ($2.69 per share) in the same quarter a year earlier. This marks a rise of 26.8% from the year-earlier quarter.
Revenue: Rose 14.5% to $3.15 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: VF Corporation reported adjusted net income of $3.52 per share. By that measure, the company beat the mean estimate of $3.49 per share. It fell short of the average revenue estimate of $3.17 billion.
Quoting Management: “Having achieved yet another quarter of record revenue, gross margin and earnings per share performance, we remain on track to deliver a year of outstanding results to our shareholders,” said Eric Wiseman, VF Chairman and Chief Executive Officer. “Our third quarter results clearly demonstrate VF’s unique competitive advantages – diversity across brands, geographic regions and channels; powerful brands that resonate with consumers; and business disciplines that enable the consistent, successful execution of our growth strategies.”
The company has seen double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 24.3%, with the biggest boost coming in the fourth quarter of the last fiscal year when revenue rose 36.9% from the year earlier quarter.
The company has now seen its net income increase for three consecutive quarters. In the second quarter, net income rose 20% and in the first quarter, the figure rose 7.2%.
The company has now surpassed analyst estimates for four quarters in a row. It beat the mark by 6 cents in the second quarter, by 2 cents in the first quarter, and by 32 cents in the fourth quarter of the last fiscal year.
Looking Forward: Expectations for the company’s next-quarter performance are higher than they were ninety days ago. Over the past three months, the average estimate for the fourth quarter has risen to $3.57 per share from $3.55. The average estimate for the fiscal year is $9.46 per share, a rise from $9.39 ninety days ago.
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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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