Quiksilver Earnings: Investors Applaud These Results

Quiksilver Inc. (NYSE:ZQK) reported net income above Wall Street’s expectations for the third quarter. Quiksilver designs, produces and distributes apparel, wintersports equipment, footwear, accessories and related products.

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Quiksilver Inc. Earnings Cheat Sheet

Results: Net income for Quiksilver Inc. rose to $12.6 million (7 cents per share) vs. $10.4 million (6 cents per share) in the same quarter a year earlier. This marks a rise of 20.8% from the year-earlier quarter.

Revenue: Rose 1.8% to $512.4 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Quiksilver Inc. beat the mean analyst estimate of 6 cents per share. It beat the average revenue estimate of $495.9 million.

Key Stats:

Last quarter was the fifth in a row that the company saw shrinking gross margins, as they fell 1.2 percentage points from the year-earlier quarter to 49.5%. Over that time, margins have contracted on average 2.4 percentage points per quarter on a year-over-year basis.

Revenue has increased for four quarters in a row. Revenue increased 3% to $492.2 million in the second quarter. The figure rose 5.4% in the first quarter from the year earlier and climbed 10.1% in the fourth quarter of the last fiscal year from the year-ago quarter.

The company beat estimates last quarter after falling short in the previous two quarters. In the second quarter, it missed the mark by 3 cents, and in the first quarter, it came in under estimates by 3 cents.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the fourth quarter has moved down from 16 cents a share to 10 cents over the last ninety days. The average estimate for the fiscal year is now 3 cents per share, down from 17 cents sixty days ago.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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