Sunday, March 3, 2013

Ralph Lauren Beats Analyst Estimates on EPS

Ralph Lauren (NYSE: RL  ) reported earnings on Feb. 6. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 29 (Q3), Ralph Lauren met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue grew slightly and GAAP earnings per share grew significantly.

Margins increased across the board.

Revenue details
Ralph Lauren chalked up revenue of $1.85 billion. The 12 analysts polled by S&P Capital IQ expected to see revenue of $1.85 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $2.40. The 15 earnings estimates compiled by S&P Capital IQ predicted $2.18 per share. GAAP EPS of $2.31 for Q3 were 30% higher than the prior-year quarter's $1.78 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 59.3%, 220 basis points better than the prior-year quarter. Operating margin was 17.2%, 220 basis points better than the prior-year quarter. Net margin was 11.7%, 230 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.74 billion. On the bottom line, the average EPS estimate is $1.34.

Next year's average estimate for revenue is $7.03 billion. The average EPS estimate is $7.88.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 366 members out of 453 rating the stock outperform, and 87 members rating it underperform. Among 128 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 111 give Ralph Lauren a green thumbs-up, and 17 give it a red thumbs-down.

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