Quiksilver Earnings: Here’s Why the Stock is Rising Now
Quiksilver Inc. (NYSE:ZQK) delivered a profit and beat Wall Street’s expectations, BUT 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 13.85%.
Quiksilver Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 11.11% to $0.10 in the quarter versus EPS of $0.09 in the year-earlier quarter.
Revenue: Decreased 3.26% to $495.76 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Quiksilver Inc. reported adjusted EPS income of $0.10 per share. By that measure, the company beat the mean analyst estimate of $0.04. It missed the average revenue estimate of $505.02 million.
Quoting Management: “Our third quarter results reflect progress on our path toward improving operating efficiencies,” said Andy Mooney, President and Chief Executive Officer of Quiksilver, Inc. “Pro-forma adjusted EBITDA increased by $4 million, selling, general and administrative expenses were reduced by $9 million and we continued to right-size our organization worldwide. In addition, our EMEA region returned to sales growth, and our global e-commerce channel and emerging markets contributed meaningful revenue increases. While global net revenues were down for our DC and Quiksilver brands, we believe that the product development plans we have in place will deliver improved sales over time.
Key Stats (on next page)…