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Quiksilver Q3 Sales Miss Forecast But Non-GAAP Profit Comfortably Beats Expectations

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Quiksilver Inc. (NYSE: ZQK) late on Thursday said that fiscal third quarter profit fell sharply as the bottom line felt the pressure due to weakness in sales in Asia Pacific region and the U.S. along with restructuring costs. Although sales missed analysts’ forecast, core earnings comfortably beat expectation, sending shares sharply up in aftermarket hours. E-commerce sales were also strong. Besides, the Company also signaled that it was streamlining its global operations.

For the latest period, the California based company posted a net income of $2 million or a penny a share compared to a profit of $12.6 million or 7 cents a share, in the year-earlier quarter.

The recently concluded quarter included charges of about $11 million linked to restructuring and some other costs.

Stripping out onetime expenses, the adjusted earnings stood at $18 million up from $16.7 million, in the same period of last year. EPS was flat at 10 cents a share.

Analysts surveyed by Thomson Reuters had forecasted earnings of 4 cents a share.

Sales for the period fell to $496 million from $512 million, in the same quarter of last year. Analysts’ consensus estimate was for revenue of $505 million.

Revenue from Americas dipped 6%, in APFC it fell 12% while in the EMEA region revenue jumped 6%.

Gross margin shrank by 10 basis points to 49.4%.

Shares climbed 15.77% in aftermarket hours to $6.02 after gaining 2.36% to $5.20.








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edliston
Post Written By: Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.

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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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