Wolverine World Wide Inc . ( WWW ), a
leading designer, manufacturer and marketer of branded footwear and
apparel, is scheduled to report its second-quarter 2012 financial
results on Tuesday, July 10, 2012.
The current Zacks Consensus Estimate for the quarter stands at
44 cents per share, indicating an estimated decrease of 8.3% from
the prior-year quarter. Revenue, as per the Zacks Consensus
Estimate, is $314 million.
First-Quarter 2011, a Synopsis
On April 23, 2012, Wolverine posted soft first-quarter 2012
results. Lower sales and a decline in margins took a toll on the
company's earnings as Wolverine reported quarterly earnings of 64
cents a share, down 11.1% from the prior-year quarter's earnings of
72 cents. However, the reported earnings exceeded the Zacks
Consensus Estimate of 54 cents.
Wolverine marked a 2.4% decrease in its top line to $322.8
million. The reported revenue was also below the Zacks Consensus
Estimate of $334 million.
Management remains optimistic for the coming quarters and raised
its earnings guidance for the current fiscal year. Wolverine now
expects 2012 earnings between $2.70 and $2.80 a share, representing
growth of 8.9% to 12.9% from the prior year.
Moreover, Wolverine revised its sales guidance and expects total
revenue in the range of $1.46 billion to $1.50 billion for fiscal
2012, reflecting year-over-year growth of 3.6% to 6.5%.
For the second quarter of 2012, the company expects revenues to
remain flat or increase in low single digits, while gross margin is
forecasted to be slightly down or remain flat. Earnings are
expected to be in the range of 40 cents to 45 cents per share.
Agreement of Estimate Revisions
For the to-be-reported quarter, 2 out of 10 estimates have been
revised downwards over the past 7 and 30 days respectively, while
none were raised. Moreover, for fiscal 2012, the story remains more
or less the same with 1 estimate (out of 10) being revised
downwards, with none moving in the opposite
Magnitude of Estimate Revisions
There was no movement in the Zacks Consensus Estimate for the
second quarter of 2012, either in the last 7 or 30 days; analysts
covering the stock have kept their estimates intact in the absence
of any major news having a direct or an indirect impact on the
With respect to earnings surprises, Wolverine has either topped
or met the Zacks Consensus Estimate over the last four quarters
with an average earnings surprise of 9.1%.
Wolverine Holds Zacks #3 Rank
Rockford, Michigan-based Wolverine enjoyed increased momentum in
fiscal 2011, which we expect to continue into fiscal 2012.
Moreover, we believe that the company remains well positioned to
increase its market share on the strength of its brand
The Merrell brand has been the key growth driver in the past
decade, and we expect it to catalyze future growth. The company's
multi-brand portfolio, geographical diversification, and
multi-distribution channel strategy remain its key growth
However, given the current global macroeconomic environment and
intense competition from Timberland Co. ( TBL ),
Deckers Outdoor Corporation ( DECK )
and Skechers USA Inc. ( SKX ),
we prefer to have a long-term Neutral recommendation on the stock.
Moreover, Wolverine holds Zacks #3 Rank that translates into a
short-term Hold rating.
DECKERS OUTDOOR (DECK): Free Stock Analysis
SKECHERS USA-A (SKX): Free Stock Analysis
(TBL): ETF Research Reports
WOLVERINE WORLD (WWW): Free Stock Analysis
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