Seeking Alpha
Profile| Send Message| ()  

Quiksilver Inc. (ZQK) is scheduled to report its Q3 2012 results on September 6, 2012, after the bell. The street expects EPS and revenue of $0.05 and $527.18M, respectively.

In this article I will recap the historical results of the company, its latest EPS estimates vs. surprises, the latest news from ZQK and the news from its closest competitors.

(click to enlarge)

Recent EPS Actuals vs. Estimates

The company has failed to meet analysts' estimates in the last four quarters. In the last quarter it reported ($0.02) loss per share, failing to meet analyst estimates of $0.01.

(click to enlarge)

The consensus EPS estimate is $0.05 based on 9 analysts' estimates, down from $0.06 a year ago. Revenue estimates are $527.18M, up from $503.32M a year ago. The median target price by analysts for the stock is $4.00.

Average recommendation: Overweight

Source: Marketwatch

Latest News

  • On June 7, 2012, Quiksilver, Inc. announced operating results for the second fiscal quarter ended April 30, 2012. Revenues grew 3% to $492.2 million compared to $478.1 million in the second quarter of fiscal 2011 and grew 5% in constant currency. The net loss was $5.1 million, or $0.03 per share, compared to a net loss of $83.3 million, or $0.51 per share, in the second quarter of fiscal 2011. The net loss a year ago included a $74.1 million non-cash goodwill impairment charge related to the company's business in Australia and Japan. The pro-forma loss in the second quarter of fiscal 2012, which excludes $2.1 million of net after-tax asset impairments and restructuring charges, was $3.0 million, or $0.02 per share, compared to pro-forma income of $17.3 million, or $0.09 per share, in the second quarter of fiscal 2011, which excluded the $74.1 million non-cash goodwill impairment charge mentioned above. The decline in pro-forma income was primarily driven by gross margin contraction. A reconciliation of GAAP results to pro-forma results is provided in the accompanying tables.
  • On April 27, 2012, Quiksilver Inc announced that it has appointed Richard Shields as the Company's Chief Financial Officer, effective May 11, 2012. Mr. Shields will be responsible for all areas of the Company's finance and accounting on a global basis.

Competitors

Abercrombie & Fitch (ANF), Deckers Outdoor (DECK), Gap (GPS), and Nike (NKE) are considered major competitors for Quiksilver and the table below provides the key metrics for these companies and the industry.

Quiksilver Inc. key ratio comparison with direct competitors

The chart below compares the stock price changes as a percentage for the selected companies and S&P 500 index for the last one year period.

ZQK Chart

ZQK data by YCharts

Competitors' Latest Development

  • On August 16, 2012, GAP Inc announced that its Board of Directors authorized a quarterly dividend of $0.125 per share payable on or after October 24, 2012 to shareholders of record at the close of business on October 10, 2012.
  • On August 16, 2012, GAP Inc announced that for fiscal 2012, it has raised diluted earnings per share to be in the range of $1.95 to $2.00, compared with $1.56 in fiscal 2011.
  • On August 15, 2012, Abercrombie & Fitch Co announced that for fiscal 2012, it expects earnings per share (EPS) in the range of $2.50 to $2.75. This projection assumes comparable store sales will decline 10% for the second half of the year.
  • On August 13, 2012, Nike Inc announced that its Board of Directors has declared a quarterly cash dividend of $0.36 per share on the company`s outstanding Class A and Class B Common Stock payable on October 1, 2012, to shareholders of record at the close of business on September 4, 2012.
  • On August 2, 2012, The Gap, Inc. announced that for second quarter of 2012, it expects diluted earnings per share to be in the range of $0.47 to $0.48, compared with $0.35 for the second quarter last year.
  • On August 1, 2012, Abercrombie & Fitch announced that for the second quarter of 2012, it expects diluted earnings per share of approximately $0.15-$0.18. Based on a lower sales trend than previously projected, the Company now expects fiscal 2012, diluted earnings per share of approximately $2.50 to $2.75. This projection assumes same store sales to be down 10% for the second half of the year, consistent with the second quarter trend.
  • On July 26, 2012, Deckers Outdoor Corp reiterated fiscal 2012 and expects revenues to increase approximately 14% over fiscal 2011 levels and diluted earnings per share to decrease between 9% and 10%. Fiscal 2012 guidance includes $17 million, or $0.30 per diluted share associated with amortization and accretion expenses related to the Sanuk brand acquisition, up from previous guidance of $13 million, or $0.23 per diluted share.
  • On June 28, 2012, Nike, Inc. announced that for fiscal 2013, on ongoing basis it expects revenue growth at or slightly above the Company's high single digit target range. on a reported basis, it expects mid to high single digit revenue growth and expects to deliver high single digit EPS growth in fiscal 2013.
  • On June 13, 2012, Faruqi & Faruqi, LLP, a national securities law firm, announced that it is investigating potential securities fraud at Deckers Outdoor Corporation. The investigation focuses on whether the Company and its executives violated federal securities laws by failing to disclose that: (1) the Company was unable to mitigate the effects of dramatically increasing prices for sheepskin; (2) the Company was experiencing a substantial reduction in demand due to the unusually warm weather; (3) Deckers' aggressive expansion resulted in the over-supply of the Company's UGG brand; (4) the Company's inventory levels for its UGG brand were increasing rapidly, causing increased mark-downs and close-outs, adversely affecting revenues; and (5) as a result of the foregoing, the Company's gross margin was negatively impacted.
  • On June 5, 2012, The Coca-Cola Company, Ford Motor Company, H.J. Heinz Company, NIKE, Inc. and Procter & Gamble announced the formation of the Plant PET Technology Collaborative (PTC), a strategic working group focused on accelerating the development and use of 100% plant-based PET materials and fiber in their products.
  • On May 31, 2012, NIKE, Inc. announced its intention to divest of two of its wholly-owned affiliate brands - Cole Haan and Umbro - to sharpen its focus on driving growth in the NIKE, Jordan, Converse and Hurley brands.
  • On May 17, 2012, The Gap, Inc. announced that its Board of Directors authorized a quarterly dividend of $0.125 per share payable on or after July 24, 2012 to shareholders of record at the close of business on July 3, 2012.
  • On May 17, 2012, The Gap, Inc. announced that the Company raised its guidance for fiscal 2012 diluted earnings per share to be in the range of $1.78 to $1.83.
  • On May 15, 2012, Nike, Inc. announced that its Board of Directors has declared a quarterly cash dividend of $0.36 per share on the Company`s outstanding Class A and Class B Common Stock payable on July 2, 2012, to shareholders of record at the close of business on June 4, 2012.
  • On May 3, 2012, The Gap, Inc. announced that for first quarter of 2012, it expects earnings per share in the range of $0.44 to $0.46. According to I/B/E/S Estimates, analysts on an average were expecting the Company to report EPS of $0.40 for first quarter of 2012.
  • On April 26, 2012, Deckers Outdoor Corporation announced that for second quarter of 2012, it expects revenue to increase approximately 8% over fiscal 2011. The Company expects second quarter 2012 diluted loss per share of approximately $(0.60) compared to the diluted loss per share of $(0.19) reported in the second quarter of 2011.
  • On March 22, 2012, Nike, Inc. announced that on a reported basis, the Company expect low double digit revenue growth for the fourth quarter of 2012 resulting in mid teens growth for fiscal 2012 and expects earnings per share growth approaching the Company' s mid teens long term goal.
  • On March 19, 2012, Dow Jones reported that The Gap, Inc. (Gap) has opened its first store in South Africa. The expansion in the region comes as the Company is closing stores in North America and opening outlets in other emerging markets.

Technical Overview


The stock has a market capitalization of $508.08M and is currently trading at $3.07 with a 52 week range of $2.09 - $4.89. The stock's year-to-date performance has been -14.96%. It is currently trading above 20 and 50 SMA, but below 200 SMA.

Sources: Yahoo Finance, Google Finance, Marketwatch, Finviz, Reuters.

Source: Earnings Preview: Quiksilver