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Michael Kors (KORS) Q3 Earnings Beat, Revenues in Line

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Michael Kors Holdings Limited , a global luxury lifestyle company, came out with third-quarter fiscal 2017 results, wherein adjusted earnings of $1.64 a share beat the Zacks Consensus Estimate of $1.62, and also increased 3.1% from the prior-year quarter.

Management now projects diluted earnings per share in the range of 68–72 cents for the fourth quarter and between $4.15 and $4.19 for fiscal 2017. Earlier, the company had projected fiscal 2017 diluted earnings in the band of $4.37–$4.43. The Zacks Consensus Estimate for the fourth quarter and fiscal year stand at 93 cents and $4.36, respectively.

Michael Kors Holdings Limited Price, Consensus and EPS Surprise

Michael Kors Holdings Limited Price, Consensus and EPS Surprise | Michael Kors Holdings Limited Quote

Earnings Estimate Revision: The Zacks Consensus Estimate for fiscal 2017 has declined in the past 7 days. In the trailing four quarters (excluding the quarter under review), the company outperformed the Zacks Consensus Estimate by an average of 9.5%.

Revenues: Michael Kors generated total revenue of $1,352.8 million that declined 3.2% year over year, but came in line with the Zacks Consensus Estimate. On a constant currency basis, total revenue fell 2.6%.

Management now forecasts fourth-quarter fiscal 2017 total revenue in the range of $1.035–$1.055 billion. For fiscal 2017, management anticipates total revenue to be nearly $4.48 billion, down from $4.55 billion guided earlier. Analysts polled by Zacks expect 2017 total revenue to be approximately $4.53 billion.

Key Events: In the third quarter, Michael Kors repurchased 2,069,706 shares for roughly $100 million. As of Dec 31, 2016, the company still had $250 million remaining under its share buyback program.

Zacks Rank: Currently, Michael Kors carries a Zacks Rank #3 (Hold) which is subject to change following the just released earnings results.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Stock Movement: Michael Kors’ shares are down nearly 7.2% during pre-market trading hours following the bleak outlook for fiscal 2017.

Check back later for our full write up on Michael Kors’ earnings report!

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