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VF Corp. (VFC) Misses on Q4 Earnings & Sales Estimates
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VF Corporation (VFC - Free Report) posted fourth-quarter 2017 results, wherein earnings of $1.01 per share missed the Zacks Consensus Estimate by a penny. However, the bottom line rose 13% year over year, including a 4 cents contribution from the Williamson-Dickie acquisition.
Earnings Estimate Revision: The Zacks Consensus Estimate for 2017 has been stable in the last 30 days, while estimate for the fourth quarter witnessed an uptrend. In the trailing four quarters, excluding quarter under review, the company has outpaced the Zacks Consensus Estimate by an average of 3.4%.
Revenues: VF Corp. generated total revenue, including royalty income, of $3,649.3 million that increased about 20% year over year but lagged the Zacks Consensus Estimate of $3,662 million. Net sales of $3,624.8 million also advanced 20% from the prior-year quarter, including contributions from the Williamson-Dickie acquisition. On a currency neutral basis, revenues jumped 18%. Excluding the Williamson-Dickie acquisition, revenues were up 12%, while currency-neutral revenue grew 10%.
Key Events: During the fourth quarter, the company decided upon selling its Nautica brand business. Earlier, the company completed the sale of its Licensed Sports Group business that consists of the Majestic brand, to Fanatics, Inc. on Apr 28, 2017. Also, it divested its Brands businesses, which included the 7 For All Mankind, Splendid and Ella Moss brands, to Delta Galil Industries Ltd. on Aug 26, 2016. Hence, results from these businesses are recorded under discontinued operations.
Further, the company declared a quarterly dividend of 46 cents per share, payable on Mar 19, 2018, to shareholders with record as on Mar 9.
Outlook: As previously announced, the company has decided to change its fiscal year end to the Saturday closest to Mar 31 from the current Saturday closest to Dec 31. This change will be effective from Mar 31, 2018. Consequently, the company provided guidance for the transitional quarter ending Mar 31, 2018. It expects revenue of nearly $2.9 billion, an increase of 16%. This includes a $200 million contribution from the Williamson-Dickie acquisition. Excluding the Williamson-Dickie acquisition, revenue is likely to increase at a high single-digit rate.
The company envisions adjusted earnings per share for the transitional quarter to be about 65 cents, marking 27% growth including a 2 cents contribution from the aforementioned acquisition. Excluding the effects of this acquisition, adjusted earnings per share is estimated to jump more than 20%.
Stock Movement: VF Corp. shares dipped nearly 1.1% in the pre-market trading hours following the earnings release. Investors developed a negative sentiment following the company’s lower-than-expected top and bottom line results.
Check back later for our full write up on VF Corp.’s earnings report!
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Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
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VF Corp. (VFC) Misses on Q4 Earnings & Sales Estimates
VF Corporation (VFC - Free Report) posted fourth-quarter 2017 results, wherein earnings of $1.01 per share missed the Zacks Consensus Estimate by a penny. However, the bottom line rose 13% year over year, including a 4 cents contribution from the Williamson-Dickie acquisition.
Earnings Estimate Revision: The Zacks Consensus Estimate for 2017 has been stable in the last 30 days, while estimate for the fourth quarter witnessed an uptrend. In the trailing four quarters, excluding quarter under review, the company has outpaced the Zacks Consensus Estimate by an average of 3.4%.
V.F. Corporation Price and EPS Surprise
V.F. Corporation Price and EPS Surprise | V.F. Corporation Quote
Revenues: VF Corp. generated total revenue, including royalty income, of $3,649.3 million that increased about 20% year over year but lagged the Zacks Consensus Estimate of $3,662 million. Net sales of $3,624.8 million also advanced 20% from the prior-year quarter, including contributions from the Williamson-Dickie acquisition. On a currency neutral basis, revenues jumped 18%. Excluding the Williamson-Dickie acquisition, revenues were up 12%, while currency-neutral revenue grew 10%.
Key Events: During the fourth quarter, the company decided upon selling its Nautica brand business. Earlier, the company completed the sale of its Licensed Sports Group business that consists of the Majestic brand, to Fanatics, Inc. on Apr 28, 2017. Also, it divested its Brands businesses, which included the 7 For All Mankind, Splendid and Ella Moss brands, to Delta Galil Industries Ltd. on Aug 26, 2016. Hence, results from these businesses are recorded under discontinued operations.
Further, the company declared a quarterly dividend of 46 cents per share, payable on Mar 19, 2018, to shareholders with record as on Mar 9.
Outlook: As previously announced, the company has decided to change its fiscal year end to the Saturday closest to Mar 31 from the current Saturday closest to Dec 31. This change will be effective from Mar 31, 2018. Consequently, the company provided guidance for the transitional quarter ending Mar 31, 2018. It expects revenue of nearly $2.9 billion, an increase of 16%. This includes a $200 million contribution from the Williamson-Dickie acquisition. Excluding the Williamson-Dickie acquisition, revenue is likely to increase at a high single-digit rate.
The company envisions adjusted earnings per share for the transitional quarter to be about 65 cents, marking 27% growth including a 2 cents contribution from the aforementioned acquisition. Excluding the effects of this acquisition, adjusted earnings per share is estimated to jump more than 20%.
Zacks Rank: Currently, VF Corp. carries a Zacks Rank #3 (Hold), which is subject to change following the earnings announcement. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stock Movement: VF Corp. shares dipped nearly 1.1% in the pre-market trading hours following the earnings release. Investors developed a negative sentiment following the company’s lower-than-expected top and bottom line results.
Check back later for our full write up on VF Corp.’s earnings report!
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Click for details >>