V.F. Corp. (VFC) Stock Down on Q3 Earnings Miss, View Cut
V.F. Corporation VFC posted third-quarter 2016 results, wherein adjusted earnings of $1.14 per share jumped 6.5% from year-ago earnings, though it missed the Zacks Consensus Estimate by a penny. However, the bottom line rose 16% on a currency-neutral basis.
Earnings Estimate Revision: The Zacks Consensus Estimate for 2016 has been largely stable over the past 30 days. Further, in the trailing four quarters, including quarter under review, the company outperformed the Zacks Consensus Estimate marginally, by an average of 0.4%.
V F CORP Price and EPS Surprise
V F CORP Price and EPS Surprise | V F CORP Quote
Revenues: V.F. Corp. generated net sales of $3,457.6 million that slipped 1% year over year and also fell short of the Zacks Consensus Estimate of $3,663.5 million, as the company witnessed declines across most coalitions, apart from the Outdoor & Action Sports segment. Total revenue, including royalty income came in at $3,488.2 million, down 1% year over year.
Key Events: On Aug 26, 2016, V.F. Corp. concluded the sale of its Contemporary Brands businesses, which included the 7 For All Mankind, Splendid and Ella Moss brands, to Delta Galil Industries Ltd. Thereafter, the company recorded all results from that business under discontinued operations, alongside removing all assets and liabilities associated with the coalition.
During the quarter, the company bought back 2.7 million shares for $166 million, as part of its ongoing program. Further, the company had roughly 15 million shares remaining for buyback, under its current authorization. Also, on Oct 20, management declared a 14% hike in its quarterly dividend to 42 cents per share, which is payable on Dec 19, 2016 to shareholders of record as on Dec 9.
Outlook: Following the quarter, management lowered its 2016 outlook. Currency-neutral revenue is now anticipated to increase 2% to $12.2 million, compared to the previous guidance of 3%–4% growth. The company now envisions reported earnings per share for 2016 to jump 3% year over year (or 7% on a currency neutral basis) to $3.13, compared with 5% (or 11% on a currency neutral basis) increase to $3.20 anticipated earlier.
Zacks Rank: Currently, V.F. 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: V.F. Corp. shares fell about 4% during pre-market trading hours following the lower than expected results and lowered outlook.
Check back later for our full write up on V.F. Corp.’s earnings report!
Confidential from Zacks
Beyond this Tale of the Tape, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
V F CORP (VFC): Free Stock Analysis Report
To read this article on Zacks.com click here.
