Wolverine World Wide (WWW): Zacks Rank Buy

• By Alex Kolb
• On 1:00 am EDT, Thursday October 29, 2009

Wolverine World Wide Inc. (NYSE: WWW - News) recently posted third-quarter earnings of 62 cents per share, eclipsing the Zacks Consensus Estimate by 11%. The company hiked its full-year earnings guidance, and analysts followed suit, lifting the Zacks Consensus Estimate to $1.74 per share from last month's $1.68. Shares spiked on the strong quarter, currently trading near a 52-week high.

Company Description

Wolverine World Wide markets branded casual, active lifestyle, work, outdoor sport and uniform footwear and apparel. The company offers well-known brands like Bates, Chaco, Cushe(TM), Hush Puppies, HYTEST, Merrell, Sebago Soft Style and Wolverine. Wolverine is also the exclusive footwear licensee of popular brands, including CAT, Harley-Davidson and Patagonia. The company's products are sold retailers in the U.S. and globally in 180 countries and territories.

Stellar Quarterly Results and Bullish Forecasts

Wolverine World Wide recently posted third-quarter earnings of 62 cents per share, eclipsing the Zacks Consensus Estimate by 11%. During the past 4 straight quarters, the company delivered an average upside earnings of 15%.

Revenue was down 6.9% year-over-year.

'We are very pleased with our third quarter results, as the Company continues to deliver excellent earnings performance in the most challenging economic environment that many of us have ever experienced,' stated Blake W. Krueger, the Company's CEO and President. 'We remain confident that our multi-brand, multi-country business model and our execution against that model can deliver exceptional results in a variety of economic climates.'

The company hiked its full-year earnings guidance to a range of $1.65 to $1.75 per share from its previous range of $1.55 to $1.73.

Analysts followed suit, lifting the 2009 Zacks Consensus Estimate to $1.74 per share from last month's $1.68. For the following year, analysts polled by Zacks are calling for earnings of $1.95 per share, versus last month's $1.87.

Shares spiked on the strong third quarter, currently trading near a 52-week high.

Strong Fundamentals

Wolverine World Wide boasts a solid balance sheet, showing no debt. The company's return on equity (ROE) of 20% nearly doubles the industry average of 11%. Its net profit margin of 6% doubles the industry average of 3%. The Growth and Income pick pays a dividend yield of 2%.

WOLVERINE WORLD (WWW): Free Stock Analysis Report

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