VF Corp Earnings: Revenue Strengthens Again by Double-Digits
S&P 500 (NYSE:SPY) component VF Corporation (NYSE:VFC) reported higher profit for the fourth quarter as revenue showed growth. 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 Fourth Quarter
Results: Net income for the clothing company rose to $257.3 million ($2.28 per share) vs. $54.2 million (49 cents per share) in the same quarter a year earlier. This is a more than fourfold rise from the year earlier quarter.
Revenue: Rose 36.9% to $2.91 billion from the year earlier quarter.
Actual vs. Wall St. Expectations: VF Corporation reported adjusted net income of $2.32 per share. By that measure, the company was about in line with expectations as the mean analyst estimate was $2.30 per share. Analysts were expecting revenue of $2.89 billion.
Quoting Management: “The power of the VF portfolio – diversified, global and growing – has never been more evident,” said Eric Wiseman, Chairman and Chief Executive Officer. “In 2011 we achieved record revenues, record earnings and record cash flow, and we completed the transformational acquisition of Timberland. The successful execution of our key international and direct-to-consumer growth drivers has delivered healthy organic growth, strong profitability and consistent return for our shareholders this year, and we look forward to building on this momentum in 2012 and beyond.”
The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 19.7%, with the biggest boost coming in the most recent quarter when revenue rose 36.9% from the year earlier quarter.
The company has now seen net income rise in four straight quarters. In the third quarter, net income rose 23.9% while the figure climbed 16.7% in the second quarter and 22.7% in the first quarter from the year earlier.
The company has now topped analyst estimates for the last four quarters. It beat the mark by 32 cents in the third quarter, by 10 cents in the second quarter, and by 12 cents in the first quarter.
Gross margin shrank 1.4 percentage points to 45.2%. The contraction appeared to be driven by increased costs, which rose 40.5% from the year earlier quarter while revenue rose 36.9%.
Looking Forward: Over the last 30 days, analysts have not been optimistic about the company’s next quarter performance. The average estimate for the first quarter of the next fiscal year is now $2.02 per share, down from $2.04. For the fiscal year, the average estimate has moved down from $8.19 a share to $8.18 over the last thirty days.
(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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