Quiksilver berichtet über gute Saison - 500 Beiträge pro Seite
eröffnet am 29.08.06 11:42:34 von
neuester Beitrag 04.04.07 01:37:37 von
neuester Beitrag 04.04.07 01:37:37 von
Beiträge: 20
ID: 1.079.484
ID: 1.079.484
Aufrufe heute: 1
Gesamt: 3.393
Gesamt: 3.393
Aktive User: 0
ISIN: US74838C1062 · WKN: 892436
0,0040
USD
-33,33 %
-0,0020 USD
Letzter Kurs 12.02.16 Nasdaq OTC
Werte aus der Branche Freizeit
| Wertpapier | Kurs | Perf. % |
|---|---|---|
| 0,5918 | +195,90 | |
| 3,9000 | +31,76 | |
| 41,11 | +10,48 | |
| 1,7500 | +10,06 | |
| 57,35 | +9,45 |
| Wertpapier | Kurs | Perf. % |
|---|---|---|
| 29,68 | -5,24 | |
| 98,00 | -8,07 | |
| 15,330 | -9,69 | |
| 0,7213 | -14,16 | |
| 5,0000 | -31,51 |
Feedback
Quiksilver says has strong back-to-school season
Mon Aug 28, 2006 11:14 PM ET
By Alexandria Sage
LAS VEGAS, Aug 28 (Reuters) - Apparel firm Quiksilver Inc. <ZQK.N> enjoyed a robust back-to-school season, company executives said on Monday, as a hot summer helped boost sales of casual surf-inspired apparel.
Additionally, denim in both the company's core young men's Quiksilver label and its girl's line, Roxy, performed well, the company said at an investor and analyst presentation at the Magic Marketplace apparel trade show in Las Vegas.
The Quiksilver presentation may allay some concern among investors and analysts of softness within the action sports lifestyle sector, whose youth apparel is geared to surfers and skateboarders -- or those who just want to emulate the look.
The positive news "gives investors comfort that in the quarter that just finished, the business was good," said Pacific Growth Equities analyst Christine Chen.
Quiksilver, whose brands also include Rossignol, DC Shoes, Hawk and Cleveland Golf, announces quarterly earnings next week.
Worries about the health of the sector came earlier this month after Pacific Sunwear of California Inc. <PSUN.O>, the biggest retailer of surf-inspired apparel for teens, reported second-quarter profit that dropped by more than half and said it was cautious about the third quarter.
That, together with news late last month from hip clothing maker Volcom Inc.<VLCM.O> that orders from Pacific Sunwear had been cut, fuelled speculation on Wall Street that the action sports segment may have slowed.
Quiksilver Chief Executive Robert McKnight told Reuters the company was not similarly affected by Pacific Sunwear's scale-backs as Volcom, because the PacSun chain carries mostly Quiksilver's Roxy line for girls.
Of Pacific Sunwear, McKnight acknowledged: "They are a barometer to Wall Street," adding that when Pacific Sunwear announces problems, it affects all surf-inspired companies.
During a preview of Quiksilver's Spring 2007 line, the brand's senior vice president of sales, John Mills, said a relaxed fit of jeans proved the best seller during the back-to-school season and that early selling was good for new fits being introduced.
"We haven't seen a slowdown in denim," Mills said.
Similarly, at Roxy, jeans were a strong category during the back-to-school season, together with shorts, bermudas and dresses, said Deanna Jackson, senior vice president of sales for Roxy. "We had a great back-to-school season," she said. "It's so 'wear-now' and we are very lightweight and we don't go too heavy."
Retail analysts have predicted that those companies that introduced the most fashionable, hot weather, "wear-now" apparel would have the best back-to-school seasons, while those who introduced warmer-weather fall apparel too early would struggle.
Jackson said that despite Pacific Sunwear's recent sluggish sales, she saw no negative impact on Roxy. "I haven't seen any change in their approach to us at all."
Last week, analyst Dorothy Lakner of CIBC World Markets wrote in a research note that it was time for investors to accumulate Quiksilver shares.
Upcoming catalysts for the stock, she wrote, included the Las Vegas trade show and an upcoming action sports convention in San Diego where new product would be unveiled, and third-quarter results.
Analysts, on average, anticipate third-quarter earnings per share of 4 cents on sales of $487.5 million, according to Reuters Estimates.
For the full fiscal year, Wall Street is expecting earnings per share of 76 cents on revenue of $2.26 billion. Quiksilver has said full-year earnings should be 87-88 cents a share, including stock compensation expense of 11 cents, with revenue of $2.25 billion to $2.27 billion.
Quiksilver shares closed at $13.14 on the New York Stock Exchange, up 4 percent.
Mon Aug 28, 2006 11:14 PM ET
By Alexandria Sage
LAS VEGAS, Aug 28 (Reuters) - Apparel firm Quiksilver Inc. <ZQK.N> enjoyed a robust back-to-school season, company executives said on Monday, as a hot summer helped boost sales of casual surf-inspired apparel.
Additionally, denim in both the company's core young men's Quiksilver label and its girl's line, Roxy, performed well, the company said at an investor and analyst presentation at the Magic Marketplace apparel trade show in Las Vegas.
The Quiksilver presentation may allay some concern among investors and analysts of softness within the action sports lifestyle sector, whose youth apparel is geared to surfers and skateboarders -- or those who just want to emulate the look.
The positive news "gives investors comfort that in the quarter that just finished, the business was good," said Pacific Growth Equities analyst Christine Chen.
Quiksilver, whose brands also include Rossignol, DC Shoes, Hawk and Cleveland Golf, announces quarterly earnings next week.
Worries about the health of the sector came earlier this month after Pacific Sunwear of California Inc. <PSUN.O>, the biggest retailer of surf-inspired apparel for teens, reported second-quarter profit that dropped by more than half and said it was cautious about the third quarter.
That, together with news late last month from hip clothing maker Volcom Inc.<VLCM.O> that orders from Pacific Sunwear had been cut, fuelled speculation on Wall Street that the action sports segment may have slowed.
Quiksilver Chief Executive Robert McKnight told Reuters the company was not similarly affected by Pacific Sunwear's scale-backs as Volcom, because the PacSun chain carries mostly Quiksilver's Roxy line for girls.
Of Pacific Sunwear, McKnight acknowledged: "They are a barometer to Wall Street," adding that when Pacific Sunwear announces problems, it affects all surf-inspired companies.
During a preview of Quiksilver's Spring 2007 line, the brand's senior vice president of sales, John Mills, said a relaxed fit of jeans proved the best seller during the back-to-school season and that early selling was good for new fits being introduced.
"We haven't seen a slowdown in denim," Mills said.
Similarly, at Roxy, jeans were a strong category during the back-to-school season, together with shorts, bermudas and dresses, said Deanna Jackson, senior vice president of sales for Roxy. "We had a great back-to-school season," she said. "It's so 'wear-now' and we are very lightweight and we don't go too heavy."
Retail analysts have predicted that those companies that introduced the most fashionable, hot weather, "wear-now" apparel would have the best back-to-school seasons, while those who introduced warmer-weather fall apparel too early would struggle.
Jackson said that despite Pacific Sunwear's recent sluggish sales, she saw no negative impact on Roxy. "I haven't seen any change in their approach to us at all."
Last week, analyst Dorothy Lakner of CIBC World Markets wrote in a research note that it was time for investors to accumulate Quiksilver shares.
Upcoming catalysts for the stock, she wrote, included the Las Vegas trade show and an upcoming action sports convention in San Diego where new product would be unveiled, and third-quarter results.
Analysts, on average, anticipate third-quarter earnings per share of 4 cents on sales of $487.5 million, according to Reuters Estimates.
For the full fiscal year, Wall Street is expecting earnings per share of 76 cents on revenue of $2.26 billion. Quiksilver has said full-year earnings should be 87-88 cents a share, including stock compensation expense of 11 cents, with revenue of $2.25 billion to $2.27 billion.
Quiksilver shares closed at $13.14 on the New York Stock Exchange, up 4 percent.
Auch Samex Mining sollte demnächst eine Meldung bringen !
In Canada regelmäßig guter Umsatz in D nur selten daher vorsicht !
Kann hier schnell bis 1€ gehen !
www.samex.com
In Canada regelmäßig guter Umsatz in D nur selten daher vorsicht !
Kann hier schnell bis 1€ gehen !
www.samex.com
von denen habe ich nen surfanzug
auf dem bild ist es aber ein wenig schlecht zu sehen
aber egal, die wellen waren geil -oktober 05 wars
auf dem bild ist es aber ein wenig schlecht zu sehen
aber egal, die wellen waren geil -oktober 05 wars
Antwort auf Beitrag Nr.: 23.667.561 von Supertubos am 29.08.06 14:32:23Hallo Supertubos,
vielleicht hast Du ja noch mehr von der "Quiksilver-Familie":
Quiksilver, Inc. is a globally diversified company that designs, produces and distributes branded apparel, wintersports and golf equipment, footwear, accessories and related products. The Company's surfing, skateboarding and snowboarding brands include Quiksilver, Roxy, DC Shoes and Hawk. Its beach and water-oriented swimwear brands include Raisins, Radio Fiji and Leilani. Quiksilver, Inc. brands in the alpine ski market include Rossignol, Dynastar, Look, Lange and Kerma. The Company makes snowboarding equipment under its Rossignol, DC Shoes, Roxy, Lib Technologies, Gnu and Bent Metal labels. Quiksilver, Inc.'s products are sold in over 90 countries through a range of distribution channels, including surf shops, ski shops, skateboard shops, snowboard shops, its Boardriders Club shops, other specialty stores and select department stores. Distribution is primarily in the United States, Europe and Australia. On July 31, 2005, the Company acquired Skis Rossignol S.A.
vielleicht hast Du ja noch mehr von der "Quiksilver-Familie":
Quiksilver, Inc. is a globally diversified company that designs, produces and distributes branded apparel, wintersports and golf equipment, footwear, accessories and related products. The Company's surfing, skateboarding and snowboarding brands include Quiksilver, Roxy, DC Shoes and Hawk. Its beach and water-oriented swimwear brands include Raisins, Radio Fiji and Leilani. Quiksilver, Inc. brands in the alpine ski market include Rossignol, Dynastar, Look, Lange and Kerma. The Company makes snowboarding equipment under its Rossignol, DC Shoes, Roxy, Lib Technologies, Gnu and Bent Metal labels. Quiksilver, Inc.'s products are sold in over 90 countries through a range of distribution channels, including surf shops, ski shops, skateboard shops, snowboard shops, its Boardriders Club shops, other specialty stores and select department stores. Distribution is primarily in the United States, Europe and Australia. On July 31, 2005, the Company acquired Skis Rossignol S.A.
Quiksilver, Inc. to Broadcast Review of Fiscal 2006 Third Quarter Financial Results over the Internet
Thursday August 31, 8:30 am ET
HUNTINGTON BEACH, Calif.--(BUSINESS WIRE)--Aug. 31, 2006--Quiksilver, Inc. (NYSE: ZQK - News) today announced that the Company's conference call to review its fiscal 2006 third quarter financial results is expected to be broadcast live over the Internet on Thursday, September 7, 2006 at 4:30 p.m. Eastern Time. The broadcast will be hosted at www.quiksilver.com/investor and at www.viavid.net. To listen to the broadcast, your computer must have Windows Media Player installed. If you do not have Windows Media Player, go to the latter site prior to the call, where you can download the software for free.
Thursday August 31, 8:30 am ET
HUNTINGTON BEACH, Calif.--(BUSINESS WIRE)--Aug. 31, 2006--Quiksilver, Inc. (NYSE: ZQK - News) today announced that the Company's conference call to review its fiscal 2006 third quarter financial results is expected to be broadcast live over the Internet on Thursday, September 7, 2006 at 4:30 p.m. Eastern Time. The broadcast will be hosted at www.quiksilver.com/investor and at www.viavid.net. To listen to the broadcast, your computer must have Windows Media Player installed. If you do not have Windows Media Player, go to the latter site prior to the call, where you can download the software for free.
Trading Spotlight
Market Scan
Quiksilver's Q3 Pressured By Rossignol
R.M. Schneiderman, 09.05.06, 6:29 PM ET
Quiksilver should deliver in-line third quarter results, according to a report by Caris & Company.
"We believe Quiksilver 's core business remains strong," said Claire Gallacher, an analyst for the research firm.
Gallacher said she expects the company to report third quarter earnings-per-share of 4 cents, which includes 3 cents per share pertaining to stock option expenses.
That would be less than last year's mark of 20 cents per share for the third quarter of 2005. But last year didn't include stock option expenses or the company's acquisition of French ski manufacturer, Rossignol.
"While the core Quiksilver business contributes much to its profitability … the additional costs of Rossignol, without significant revenue contribution, is expected to pressure third quarter earnings," the analyst said.
Quiksilver purchased a controlling stake in Rossignol in March of 2005 for roughly $320 million.
The company expects third quarter revenues to increase by 30% to $486 million.
Caris & Company maintained a "buy" rating on the firm, which will report third-quarter results on Thursday.
Quiksilver's Q3 Pressured By Rossignol
R.M. Schneiderman, 09.05.06, 6:29 PM ET
Quiksilver should deliver in-line third quarter results, according to a report by Caris & Company.
"We believe Quiksilver 's core business remains strong," said Claire Gallacher, an analyst for the research firm.
Gallacher said she expects the company to report third quarter earnings-per-share of 4 cents, which includes 3 cents per share pertaining to stock option expenses.
That would be less than last year's mark of 20 cents per share for the third quarter of 2005. But last year didn't include stock option expenses or the company's acquisition of French ski manufacturer, Rossignol.
"While the core Quiksilver business contributes much to its profitability … the additional costs of Rossignol, without significant revenue contribution, is expected to pressure third quarter earnings," the analyst said.
Quiksilver purchased a controlling stake in Rossignol in March of 2005 for roughly $320 million.
The company expects third quarter revenues to increase by 30% to $486 million.
Caris & Company maintained a "buy" rating on the firm, which will report third-quarter results on Thursday.
09.07.06
zqk: INITIATING COVERAGE WITH A BUY RATING AND $18 PRICE TARGET
We are initiating coverage of Quiksilver Corp. (ZQK) with a Buy rating and $18/share price target. We think the core Quiksilver business is headed in the right direction, and believe that the initiatives surrounding the integration of Rossignol will make a meaningful impact to F2006 earnings. We believe the Company is at an attractive inflection point, and think that as early as FQ3 we will see the Rossignol restructuring have an impact.
Ausführlicher und sehr guter Bericht:
http://www.wrhambrecht.com/sector/consumer/notes/zqk20060907…
zqk: INITIATING COVERAGE WITH A BUY RATING AND $18 PRICE TARGET
We are initiating coverage of Quiksilver Corp. (ZQK) with a Buy rating and $18/share price target. We think the core Quiksilver business is headed in the right direction, and believe that the initiatives surrounding the integration of Rossignol will make a meaningful impact to F2006 earnings. We believe the Company is at an attractive inflection point, and think that as early as FQ3 we will see the Rossignol restructuring have an impact.
Ausführlicher und sehr guter Bericht:
http://www.wrhambrecht.com/sector/consumer/notes/zqk20060907…
Reuters
Quiksilver quarterly profit down, outlook cut
Thursday September 7, 9:05 pm ET
LOS ANGELES (Reuters) - Quiksilver Inc. (NYSE:ZQK - News) on Thursday posted a 78 percent drop in quarterly net income due to soft summer demand for its Rossignol ski brand and warned that a weak golf market would hurt results for the rest of the year.
Its shares fell 7.6 percent in after hours trading.
The maker of surf-inspired apparel also forecast 2007 earnings below Wall Street's average forecast.
Third-quarter net income fell to $5.3 million, or 4 cents per share, from $24.6 million, or 20 cents per share, a year earlier.
Analysts, on average, had been expecting the Huntington Beach, California-based company to report net income of 4 cents a share, according to Reuters Estimates.
The company, whose brands include Roxy, DC Shoes and Hawk, said revenue rose 41 percent to $525.9 million.
French ski brand Rossignol, which Quiksilver acquired last year and plans to turn into a global apparel business, has a negative impact on results in the second and third quarters, during seasonally low shipping periods. But Rossignol has a positive effect in the first and fourth quarters, when it adds to profits.
For the fourth quarter, Quiksilver expects to earn about 53 cents a share, excluding stock-based compensation costs. The company said it expects full-year 2006 earnings to be about 84 cents a share, excluding those costs.
Quiksilver's previous full-year view called for earnings of 87 to 88 cents, excluding stock-based compensation.
Including stock-based compensation costs, Quiksilver expects to earn 51 cents a share in the fourth quarter and 73 cents a share for 2006. On that basis, analysts had been expecting earnings of 54 cents a share for the quarter and 76 cents a share for the year, according to Reuters Estimates.
The company forecast revenue of $745 million to $750 million for the fourth quarter, above analysts' average estimate of $713 million, according to Reuters Estimates.
For fiscal 2007, Quiksilver forecast earnings of 88 to 92 cents a share, including stock-based compensation costs. On that basis, analysts are expecting earnings of $1.01 per share, according to Reuters Estimates.
Fiscal 2007 revenue is expected to be about $2.5 billion, the company said. Analysts were expecting revenue of $2.493 billion, according to Reuters Estimates.
Quiksilver shares fell to $12.61 in electronic trading after closing at $13.64 on the New York Stock Exchange.
Quiksilver quarterly profit down, outlook cut
Thursday September 7, 9:05 pm ET
LOS ANGELES (Reuters) - Quiksilver Inc. (NYSE:ZQK - News) on Thursday posted a 78 percent drop in quarterly net income due to soft summer demand for its Rossignol ski brand and warned that a weak golf market would hurt results for the rest of the year.
Its shares fell 7.6 percent in after hours trading.
The maker of surf-inspired apparel also forecast 2007 earnings below Wall Street's average forecast.
Third-quarter net income fell to $5.3 million, or 4 cents per share, from $24.6 million, or 20 cents per share, a year earlier.
Analysts, on average, had been expecting the Huntington Beach, California-based company to report net income of 4 cents a share, according to Reuters Estimates.
The company, whose brands include Roxy, DC Shoes and Hawk, said revenue rose 41 percent to $525.9 million.
French ski brand Rossignol, which Quiksilver acquired last year and plans to turn into a global apparel business, has a negative impact on results in the second and third quarters, during seasonally low shipping periods. But Rossignol has a positive effect in the first and fourth quarters, when it adds to profits.
For the fourth quarter, Quiksilver expects to earn about 53 cents a share, excluding stock-based compensation costs. The company said it expects full-year 2006 earnings to be about 84 cents a share, excluding those costs.
Quiksilver's previous full-year view called for earnings of 87 to 88 cents, excluding stock-based compensation.
Including stock-based compensation costs, Quiksilver expects to earn 51 cents a share in the fourth quarter and 73 cents a share for 2006. On that basis, analysts had been expecting earnings of 54 cents a share for the quarter and 76 cents a share for the year, according to Reuters Estimates.
The company forecast revenue of $745 million to $750 million for the fourth quarter, above analysts' average estimate of $713 million, according to Reuters Estimates.
For fiscal 2007, Quiksilver forecast earnings of 88 to 92 cents a share, including stock-based compensation costs. On that basis, analysts are expecting earnings of $1.01 per share, according to Reuters Estimates.
Fiscal 2007 revenue is expected to be about $2.5 billion, the company said. Analysts were expecting revenue of $2.493 billion, according to Reuters Estimates.
Quiksilver shares fell to $12.61 in electronic trading after closing at $13.64 on the New York Stock Exchange.
Motley Fool
Fool On Call: Short-Term Pains, Long-Term Gains
Wednesday September 13, 3:27 pm ET
By Jeremy MacNealy
If you listened in on Quiksilver's (NYSE: ZQK - News) third-quarter earnings conference call, judging from management's glowing remarks, you would have never guessed that its stock was being shunned on Wall Street. What's the disconnect? The stock market is fixated on short-term results and the seasonality impact of the company's Rossignol brand, but it may be overlooking the long-term possibilities for growth.
In the newest edition of Fool On Call, we will dive into the company's latest conference call, highlighting Rossignol in particular. We will focus our attention in these areas:
Seasonality impact
Integration efforts
Brand expansion
Rossignol's seasonality
The surf, skateboarding, and skiing industry includes such names as Pacific Sunwear (Nasdaq: PSUN - News), Oakley (NYSE: OO - News), K2 (NYSE: KTO - News), and even Hot Topic (Nasdaq: HOTT - News). None of these stocks have had a particularly good year in the stock market.
Does that mean the industry as a whole has gotten too far ahead of itself, and is now going through a cool-off period? Maybe. But having analyzed these companies over the past year, I think it's more likely that each has its own set of challenges to be worked through -- Quiksilver included.
The most notable hurdle facing Quiksilver at present is the Rossignol integration. CEO Bob McKnight said during the call that the company is "going to take Rossignol, which is already one of the most recognized brands in the world, to a whole new level." That may be; in the meantime, however, Rossignol that took Quiksilver down to a whole other level. Despite a 41% jump in net revenues for the company, earnings-per-share came in at $0.04 per share -- well shy of the $0.20 EPS mark met a year ago.
Stock compensation expenses were a part of the drag, but another significant factor is the seasonality of Rossignol's business. The first and fourth quarters -- yes, the winter months -- are when Rossignol shines, but the second and third quarters? Not so much. It was explained during the call that Rossignol operating expenses "do not fluctuate with revenues." When sales are weak in the summer months, the company still has the burden of fixed, consistent operating expenses.
These expenses are significantly leveraged in the winter season, however, when sales for this ski equipment maker are strongest. But even with the strength of Rossignol's fourth quarter, note that earnings expectations for the upcoming period were still revised downward, since Quiksilver is also being challenged by its golf business.
Cost-cutting through consolidation
As far as the integration process goes, I do like what Quiksilver has been able to achieve, as it looks to be setting itself nicely for the future. The primary office has been relocated, along with the other brands, into its Park City, Utah facility. This will help develop a synergy between the various brands within the company. Additionally, the 10 European offices were consolidated down to a single office, and the 17 distribution centers were cut down to three. Plans are also in place to close one factory in France, shifting the production to another located in Spain.
Quiksilver President Bernard Mariette believes that these changes will enable it to "dramatically increase the profitability of the business over the next several years." We should begin to see the impact of these cost-cutting changes in the fourth quarter; CFO Steve Brink stated during the Q&A portion of the call that Rossignol is expected to contribute "70% to 75% of the profit growth" in the period. Sales for the brand are estimated to be up roughly 25%, which will also be accompanied by "some gains in the gross profit margin."
Expanding the Rossignol brand
Rossignol is largely known as a hardware manufacturer of skis and related equipment. And while we won't see it step out of the hardware business -- on the contrary, the company is excited about a new ski for the upcoming winter season that can change its "flexibility" -- we should begin to see the Rossignol brand accelerate sales in different markets, through different products.
France has been the hub for Rossignol sales for years, but looking ahead, the countries of the former Eastern Bloc will increasingly become an important area for Quiksilver and its various lines. But the real news for Rossignol is the launch of its apparel line at the end of fiscal 2007. The impact of this new apparel line will be significant, since management is maintaining its target of $100 million in apparel revenues in fiscal 2008 from Rossignol alone. This will go a long way toward moving Rossignol out of the single-digit growth territory it has been stuck in as a result of its slower-growth equipment biz. Additionally, Brink said that revenue from Rossignol apparel is expected to carry margins that "will clearly be higher than the equipment margins."
The final effect of the Rossignol apparel introduction: The line will not be limited to winterwear, instead targeting every season. This should help smooth out some of the brand's current seasonality.
Take to the slopes?
I guess you can't blame the stock market for shortsightedness -- it appears to be a part of its nature. But as Quiksilver continues to iron out its Rossignol acquisition, there appears to be a real payoff in the not-so-distant future for long-term-minded shareholders. Earnings are expected to grow 21% to 26% per share in fiscal 2007, and when you add in the effect of its massive apparel launch at the end of next year, it's not hard to see why management is so enthusiastic about what's in store for the company.
Pacific Sunwear and TiVo are Motley Fool Stock Advisor recommendations.
Fool contributor Jeremy MacNealy has no financial interest in any company mentioned. The Fool has a disclosure policy.
Fool On Call: Short-Term Pains, Long-Term Gains
Wednesday September 13, 3:27 pm ET
By Jeremy MacNealy
If you listened in on Quiksilver's (NYSE: ZQK - News) third-quarter earnings conference call, judging from management's glowing remarks, you would have never guessed that its stock was being shunned on Wall Street. What's the disconnect? The stock market is fixated on short-term results and the seasonality impact of the company's Rossignol brand, but it may be overlooking the long-term possibilities for growth.
In the newest edition of Fool On Call, we will dive into the company's latest conference call, highlighting Rossignol in particular. We will focus our attention in these areas:
Seasonality impact
Integration efforts
Brand expansion
Rossignol's seasonality
The surf, skateboarding, and skiing industry includes such names as Pacific Sunwear (Nasdaq: PSUN - News), Oakley (NYSE: OO - News), K2 (NYSE: KTO - News), and even Hot Topic (Nasdaq: HOTT - News). None of these stocks have had a particularly good year in the stock market.
Does that mean the industry as a whole has gotten too far ahead of itself, and is now going through a cool-off period? Maybe. But having analyzed these companies over the past year, I think it's more likely that each has its own set of challenges to be worked through -- Quiksilver included.
The most notable hurdle facing Quiksilver at present is the Rossignol integration. CEO Bob McKnight said during the call that the company is "going to take Rossignol, which is already one of the most recognized brands in the world, to a whole new level." That may be; in the meantime, however, Rossignol that took Quiksilver down to a whole other level. Despite a 41% jump in net revenues for the company, earnings-per-share came in at $0.04 per share -- well shy of the $0.20 EPS mark met a year ago.
Stock compensation expenses were a part of the drag, but another significant factor is the seasonality of Rossignol's business. The first and fourth quarters -- yes, the winter months -- are when Rossignol shines, but the second and third quarters? Not so much. It was explained during the call that Rossignol operating expenses "do not fluctuate with revenues." When sales are weak in the summer months, the company still has the burden of fixed, consistent operating expenses.
These expenses are significantly leveraged in the winter season, however, when sales for this ski equipment maker are strongest. But even with the strength of Rossignol's fourth quarter, note that earnings expectations for the upcoming period were still revised downward, since Quiksilver is also being challenged by its golf business.
Cost-cutting through consolidation
As far as the integration process goes, I do like what Quiksilver has been able to achieve, as it looks to be setting itself nicely for the future. The primary office has been relocated, along with the other brands, into its Park City, Utah facility. This will help develop a synergy between the various brands within the company. Additionally, the 10 European offices were consolidated down to a single office, and the 17 distribution centers were cut down to three. Plans are also in place to close one factory in France, shifting the production to another located in Spain.
Quiksilver President Bernard Mariette believes that these changes will enable it to "dramatically increase the profitability of the business over the next several years." We should begin to see the impact of these cost-cutting changes in the fourth quarter; CFO Steve Brink stated during the Q&A portion of the call that Rossignol is expected to contribute "70% to 75% of the profit growth" in the period. Sales for the brand are estimated to be up roughly 25%, which will also be accompanied by "some gains in the gross profit margin."
Expanding the Rossignol brand
Rossignol is largely known as a hardware manufacturer of skis and related equipment. And while we won't see it step out of the hardware business -- on the contrary, the company is excited about a new ski for the upcoming winter season that can change its "flexibility" -- we should begin to see the Rossignol brand accelerate sales in different markets, through different products.
France has been the hub for Rossignol sales for years, but looking ahead, the countries of the former Eastern Bloc will increasingly become an important area for Quiksilver and its various lines. But the real news for Rossignol is the launch of its apparel line at the end of fiscal 2007. The impact of this new apparel line will be significant, since management is maintaining its target of $100 million in apparel revenues in fiscal 2008 from Rossignol alone. This will go a long way toward moving Rossignol out of the single-digit growth territory it has been stuck in as a result of its slower-growth equipment biz. Additionally, Brink said that revenue from Rossignol apparel is expected to carry margins that "will clearly be higher than the equipment margins."
The final effect of the Rossignol apparel introduction: The line will not be limited to winterwear, instead targeting every season. This should help smooth out some of the brand's current seasonality.
Take to the slopes?
I guess you can't blame the stock market for shortsightedness -- it appears to be a part of its nature. But as Quiksilver continues to iron out its Rossignol acquisition, there appears to be a real payoff in the not-so-distant future for long-term-minded shareholders. Earnings are expected to grow 21% to 26% per share in fiscal 2007, and when you add in the effect of its massive apparel launch at the end of next year, it's not hard to see why management is so enthusiastic about what's in store for the company.
Pacific Sunwear and TiVo are Motley Fool Stock Advisor recommendations.
Fool contributor Jeremy MacNealy has no financial interest in any company mentioned. The Fool has a disclosure policy.
Quiksilver, Inc. to Present at Piper Jaffray / Integrated Corporate Relations London Retail, Apparel & Footwear Conference
Monday October 9, 8:00 am ET
HUNTINGTON BEACH, Calif.--(BUSINESS WIRE)--Quiksilver, Inc. (NYSE:ZQK - News) today announced that the Company will be presenting at the Piper Jaffray / Integrated Corporate Relations London Retail, Apparel & Footwear Conference. The Quiksilver investor presentation will be webcast live at 4:00 a.m. Eastern Time on October 11, 2006. The broadcast will be hosted at www.quiksilver.com/investor.
About Quiksilver
Quiksilver, Inc. (NYSE:ZQK - News) is the world's leading outdoor sports lifestyle company, which designs, produces and distributes a diversified mix of branded apparel, wintersports and golf equipment, footwear, accessories and related products. The Company's apparel and footwear brands represent a casual lifestyle for young-minded people that connect with its boardriding culture and heritage, while its wintersports and golf brands symbolize a long standing commitment to technical expertise and competitive success on the mountains and on the links.
The reputation of Quiksilver Inc.'s brands is based on different outdoor sports. The Company's Quiksilver, Roxy, DC Shoes and Hawk brands are synonymous with the heritage and culture of surfing, skateboarding and snowboarding, and its beach and water oriented swimwear brands include Raisins, Radio Fiji and Leilani. The Rossignol, Dynastar, Lange, Look and Kerma brands are leaders in the alpine ski market, and the Company makes snowboarding equipment under its Rossignol, Dynastar, DC Shoes, Roxy, Lib Technologies, Gnu and Bent Metal labels. The Company's golf business includes Cleveland Golf, as well as Never Compromise putters and Fidra apparel. Gotcha is the Company's surf-based European brand addressing street fashion.
The Company's products are sold in over 90 countries in a wide range of distribution, including surf shops, ski shops, skateboard shops, snowboard shops, proprietary Boardriders Club shops, other specialty stores and select department stores. Quiksilver's corporate and Americas' headquarters are in Huntington Beach, California, while its European headquarters are in St. Jean de Luz and St. Jean de Moirans, France, and its Asia/Pacific headquarters are in Torquay, Australia.
NOTE: For further information about Quiksilver, Inc., you are invited to take a look at our world at www.quiksilver.com, www.roxy.com, www.dcshoecousa.com, www.quiksilveredition.com, www.hawkclothing.com, www.rossignol.com, www.dynastar.com, www.clevelandgolf.com, and www.fidragolf.com.
Contact:
Quiksilver, Inc.
Steven L. Brink, 714-889-2200
or
Investor Relations:
Integrated Corporate Relations
Chad A. Jacobs, Joe Teklits, James Palczynski
203-682-8200
--------------------------------------------------------------------------------
Source: Quiksilver, Inc.
Monday October 9, 8:00 am ET
HUNTINGTON BEACH, Calif.--(BUSINESS WIRE)--Quiksilver, Inc. (NYSE:ZQK - News) today announced that the Company will be presenting at the Piper Jaffray / Integrated Corporate Relations London Retail, Apparel & Footwear Conference. The Quiksilver investor presentation will be webcast live at 4:00 a.m. Eastern Time on October 11, 2006. The broadcast will be hosted at www.quiksilver.com/investor.
About Quiksilver
Quiksilver, Inc. (NYSE:ZQK - News) is the world's leading outdoor sports lifestyle company, which designs, produces and distributes a diversified mix of branded apparel, wintersports and golf equipment, footwear, accessories and related products. The Company's apparel and footwear brands represent a casual lifestyle for young-minded people that connect with its boardriding culture and heritage, while its wintersports and golf brands symbolize a long standing commitment to technical expertise and competitive success on the mountains and on the links.
The reputation of Quiksilver Inc.'s brands is based on different outdoor sports. The Company's Quiksilver, Roxy, DC Shoes and Hawk brands are synonymous with the heritage and culture of surfing, skateboarding and snowboarding, and its beach and water oriented swimwear brands include Raisins, Radio Fiji and Leilani. The Rossignol, Dynastar, Lange, Look and Kerma brands are leaders in the alpine ski market, and the Company makes snowboarding equipment under its Rossignol, Dynastar, DC Shoes, Roxy, Lib Technologies, Gnu and Bent Metal labels. The Company's golf business includes Cleveland Golf, as well as Never Compromise putters and Fidra apparel. Gotcha is the Company's surf-based European brand addressing street fashion.
The Company's products are sold in over 90 countries in a wide range of distribution, including surf shops, ski shops, skateboard shops, snowboard shops, proprietary Boardriders Club shops, other specialty stores and select department stores. Quiksilver's corporate and Americas' headquarters are in Huntington Beach, California, while its European headquarters are in St. Jean de Luz and St. Jean de Moirans, France, and its Asia/Pacific headquarters are in Torquay, Australia.
NOTE: For further information about Quiksilver, Inc., you are invited to take a look at our world at www.quiksilver.com, www.roxy.com, www.dcshoecousa.com, www.quiksilveredition.com, www.hawkclothing.com, www.rossignol.com, www.dynastar.com, www.clevelandgolf.com, and www.fidragolf.com.
Contact:
Quiksilver, Inc.
Steven L. Brink, 714-889-2200
or
Investor Relations:
Integrated Corporate Relations
Chad A. Jacobs, Joe Teklits, James Palczynski
203-682-8200
--------------------------------------------------------------------------------
Source: Quiksilver, Inc.
Quiksilver's Kelly Slater Wins Eighth World Title in Spain
Friday October 13, 5:22 pm ET
The Greatest Professional Surfer of All Time Rewrites History Once Again
HUNTINGTON BEACH, Calif.--(BUSINESS WIRE)--Quiksilver, a brand of Quiksilver, Inc. (NYSE:ZQK - News), congratulates Kelly Slater (Cocoa Beach, Florida) on winning his eighth world surfing championship today in Mundaka, Spain. With wins at the first two contests of the ASP World Championship Tour and consistent top five finishes the rest of the season, Slater's victory in the semifinal round at Mundaka culminates yet another incredible season for the legendary surfer and further solidifies his place as, unquestionably, the greatest surfer of all time.
Source: Quiksilver
Tensions were high going into the European leg of the WCT with Australians Joel Parkinson, Taj Burrow, Mick Fanning and three-time world champion Andy Irons chasing after Slater. As reported in the Australian press, good friends Parkinson and Fanning had made a pact to prevent Slater from winning the title. Keeping true to their word and putting up a good fight, they took first and second at the Quiksilver Pro France last month. But Burrow, Irons, and Fanning went down in the late rounds of the Mundaka contest leaving only a semifinal match-up with Parkinson in the way of Slater's title. Scoring a handful of the heat's better waves and powerfully maneuvering through the sections, Slater handily defeated his competition with a total wave score of 16.5 to officially clinch his eighth world title. He joined Parkinson and his other rivals on the beach for a brief celebration before surfing in the final against longtime friend, Bobby Martinez. Martinez (Santa Barbara, California), who has idolized Slater his entire life, won the exchange, but the real winner of the day was, without a doubt, Slater.
"I woke up early today, and I was really calm. I felt like it was going to happen today," said Slater during a press conference immediately following the awards ceremony. "I put everything I had into my best wave in my heat with Joel. My muscles were aching and tired on that wave, but I knew it was going to win me the heat and the title."
Slater catapulted on to the scene in the early 1990s, captivating the world with his groundbreaking and innovative surfing skills. He won the world title a record six times between 1992 and 1998. Last year, seven years after his last title, Slater made one of the greatest comebacks in the history of sports to win a highly emotional seventh world title in Brazil. But Slater, a fierce competitor even at 34 years of age, showed no sign of stopping after breaking his own records and becoming the youngest and oldest to take the crown. Instead, he confidently rode the momentum of the roller coaster 2005 season and clinched back-to-back titles this year by consistently surfing with his trademark combination of unprecedented focus, skill and style.
Bob McKnight, Quiksilver CEO and longtime friend of Kelly Slater, was watching the event on the web and was one of the first to congratulate the eight-time world champ.
"Kelly's seventh world title last year was a really emotional and deeply satisfying experience for all of us," said McKnight. "We all rode the roller coaster with him and shared his tears of joy and relief when he finished that spectacular season and secured the title in Brazil. This year has been a lot more fun! Slater has been in perfect form all season, starting with the Quiksilver Pro Gold Coast, and we have been celebrating with him every step of the way. Kelly is one of the best athletes in the world. He makes the impossible look so easy. He competes intensely and wins graciously. We are proud to have him in our family, and we look forward to whatever he has in store for us. Go Sla'8s!"
An international newsfeed featuring an exclusive post event press conference will be available to US TV networks today. Satellite coordinates and other details below.
Friday October 13, 5:22 pm ET
The Greatest Professional Surfer of All Time Rewrites History Once Again
HUNTINGTON BEACH, Calif.--(BUSINESS WIRE)--Quiksilver, a brand of Quiksilver, Inc. (NYSE:ZQK - News), congratulates Kelly Slater (Cocoa Beach, Florida) on winning his eighth world surfing championship today in Mundaka, Spain. With wins at the first two contests of the ASP World Championship Tour and consistent top five finishes the rest of the season, Slater's victory in the semifinal round at Mundaka culminates yet another incredible season for the legendary surfer and further solidifies his place as, unquestionably, the greatest surfer of all time.
Source: Quiksilver
Tensions were high going into the European leg of the WCT with Australians Joel Parkinson, Taj Burrow, Mick Fanning and three-time world champion Andy Irons chasing after Slater. As reported in the Australian press, good friends Parkinson and Fanning had made a pact to prevent Slater from winning the title. Keeping true to their word and putting up a good fight, they took first and second at the Quiksilver Pro France last month. But Burrow, Irons, and Fanning went down in the late rounds of the Mundaka contest leaving only a semifinal match-up with Parkinson in the way of Slater's title. Scoring a handful of the heat's better waves and powerfully maneuvering through the sections, Slater handily defeated his competition with a total wave score of 16.5 to officially clinch his eighth world title. He joined Parkinson and his other rivals on the beach for a brief celebration before surfing in the final against longtime friend, Bobby Martinez. Martinez (Santa Barbara, California), who has idolized Slater his entire life, won the exchange, but the real winner of the day was, without a doubt, Slater.
"I woke up early today, and I was really calm. I felt like it was going to happen today," said Slater during a press conference immediately following the awards ceremony. "I put everything I had into my best wave in my heat with Joel. My muscles were aching and tired on that wave, but I knew it was going to win me the heat and the title."
Slater catapulted on to the scene in the early 1990s, captivating the world with his groundbreaking and innovative surfing skills. He won the world title a record six times between 1992 and 1998. Last year, seven years after his last title, Slater made one of the greatest comebacks in the history of sports to win a highly emotional seventh world title in Brazil. But Slater, a fierce competitor even at 34 years of age, showed no sign of stopping after breaking his own records and becoming the youngest and oldest to take the crown. Instead, he confidently rode the momentum of the roller coaster 2005 season and clinched back-to-back titles this year by consistently surfing with his trademark combination of unprecedented focus, skill and style.
Bob McKnight, Quiksilver CEO and longtime friend of Kelly Slater, was watching the event on the web and was one of the first to congratulate the eight-time world champ.
"Kelly's seventh world title last year was a really emotional and deeply satisfying experience for all of us," said McKnight. "We all rode the roller coaster with him and shared his tears of joy and relief when he finished that spectacular season and secured the title in Brazil. This year has been a lot more fun! Slater has been in perfect form all season, starting with the Quiksilver Pro Gold Coast, and we have been celebrating with him every step of the way. Kelly is one of the best athletes in the world. He makes the impossible look so easy. He competes intensely and wins graciously. We are proud to have him in our family, and we look forward to whatever he has in store for us. Go Sla'8s!"
An international newsfeed featuring an exclusive post event press conference will be available to US TV networks today. Satellite coordinates and other details below.
Morgen kommen die Zahlen!
Foolish Forecast: Quiksilver Hits Powder
http://www.fool.com/news/mft/2006/mft06121222.htm
By Rich Duprey (TMF Cop)
12/12/2006
Though primarily a clothing retailer for the skateboard and surfer crowd, Quiksilver(Nasdaq: ZQK) has branched out into skiing hardware with its Rossignol acquisition, which also brought Cleveland Golf with it. I mean, like, "Fore!" dude. The retailer will be reporting fourth-quarter and end-of-year results on Thursday. Here's what people are saying on the down low.
What analysts say:
Buy, sell, or waffle? The 17 analysts that cover Quiksilver generally give it a thumbs-up. Ten of them say it's a buy or strong buy, and seven think you should hold tight. No one is recommending a sell.
Revenues. For the fourth quarter, revenues are expected to land in the $747 million range, while full-year sales should be $2.3 billion, a 17% and 30% increase, respectively.
Earnings. Profits for the quarter are expected to nearly double, coming in at $0.51 per share, up from the $0.27 reported last year, while full-year earnings are actually expected to be lower at $0.73, down from the $0.86 per share posted last year.
What management says:
Quiksilver's core business has been running true to form, turning in strong results. Its board-sports brands, including Quiksilver, Roxy, and DC Shoes, were quite popular during the summer months -- no surprise there. Rossignol, of course, being a winter-sports brand, had been dragging down performance. So did Cleveland Golf, which should have had a better time of it. But the golfing market in general is relatively flat, with the number of rounds of golf played not gaining ground this year, and the fourth quarter should be a slow one for that division.
Rossignol, however, should continue to provide a boost to the company this quarter, along with the first quarter next year. Sales of ski equipment helped revenues jump 84% in last year's fourth quarter in the Americas, and more than double in Europe. 2005 was the first time Quiksilver had Rossignol contributing to its results, so the comparisons from 2004 were significant. Now, after its first full year as part of the consolidated business, the comparisons won't be so dramatic.
What management does:
In addition to the drag that Rossignol has played on sales, particularly during the warmer-weather months, it's also hurt the company's profit margins. Quiksilver doesn't foresee that changing anytime soon. Skiing is as competitive an industry as it is a sport, and trying to stay ahead of the competition is a pricey and only marginally profitable endeavor.
Margin %
07/05
10/05
01/06
04/06
07/06
Gross
46.1%
45.4%
45.7%
45.7%
45.9%
Op.
10.6%
10.2%
9.9%
8.3%
6.9%
Net
6.6%
6%
5.6%
3.9%
2.8%
All data courtesy of Capital IQ, a division of Standard & Poor's. Data reflects trailing-12-month performance for the quarters ended in the named months.
One Fool says:
It was expected from the time of their acquisition that it would take a while for Quicksilver to digest Rossignol and Cleveland Golf. However, the skateboard, snowboard, and clothing lines are still exceptionally strong brands, enjoying wide distribution beyond the company's own retail stores. With the continued popularity of PacSun(Nasdaq: PSUN) and Zumiez(Nasdaq: ZUMZ) as teen retailers that cater to the surf-and-skate crowd, Quiksilver is still on a smooth downhill run. That probably explains why its recent stock chart resembles the ascending slope of a black-diamond trail.
Competitors:
K2(NYSE: KTO)
Volcom(Nasdaq: VLCM)
Related Foolishness:
Quiksilver Heads for the Slopes
The Quik(silver) and the Dead
Volcomand Zumiez are recommendations ofMotley Fool Hidden Gems. PacSun is a recommendation ofMotley Fool Stock Advisor. Whatever your investing style, you can hit the slopes with a Motley Fool newsletter designed for you!
Fool contributor Rich Duprey owns shares of K2, but does not own any of the other stocks mentioned in this article. You can see his holdings here. The Motley Fool has a disclosure policy.
Foolish Forecast: Quiksilver Hits Powder
http://www.fool.com/news/mft/2006/mft06121222.htm
By Rich Duprey (TMF Cop)
12/12/2006
Though primarily a clothing retailer for the skateboard and surfer crowd, Quiksilver(Nasdaq: ZQK) has branched out into skiing hardware with its Rossignol acquisition, which also brought Cleveland Golf with it. I mean, like, "Fore!" dude. The retailer will be reporting fourth-quarter and end-of-year results on Thursday. Here's what people are saying on the down low.
What analysts say:
Buy, sell, or waffle? The 17 analysts that cover Quiksilver generally give it a thumbs-up. Ten of them say it's a buy or strong buy, and seven think you should hold tight. No one is recommending a sell.
Revenues. For the fourth quarter, revenues are expected to land in the $747 million range, while full-year sales should be $2.3 billion, a 17% and 30% increase, respectively.
Earnings. Profits for the quarter are expected to nearly double, coming in at $0.51 per share, up from the $0.27 reported last year, while full-year earnings are actually expected to be lower at $0.73, down from the $0.86 per share posted last year.
What management says:
Quiksilver's core business has been running true to form, turning in strong results. Its board-sports brands, including Quiksilver, Roxy, and DC Shoes, were quite popular during the summer months -- no surprise there. Rossignol, of course, being a winter-sports brand, had been dragging down performance. So did Cleveland Golf, which should have had a better time of it. But the golfing market in general is relatively flat, with the number of rounds of golf played not gaining ground this year, and the fourth quarter should be a slow one for that division.
Rossignol, however, should continue to provide a boost to the company this quarter, along with the first quarter next year. Sales of ski equipment helped revenues jump 84% in last year's fourth quarter in the Americas, and more than double in Europe. 2005 was the first time Quiksilver had Rossignol contributing to its results, so the comparisons from 2004 were significant. Now, after its first full year as part of the consolidated business, the comparisons won't be so dramatic.
What management does:
In addition to the drag that Rossignol has played on sales, particularly during the warmer-weather months, it's also hurt the company's profit margins. Quiksilver doesn't foresee that changing anytime soon. Skiing is as competitive an industry as it is a sport, and trying to stay ahead of the competition is a pricey and only marginally profitable endeavor.
Margin %
07/05
10/05
01/06
04/06
07/06
Gross
46.1%
45.4%
45.7%
45.7%
45.9%
Op.
10.6%
10.2%
9.9%
8.3%
6.9%
Net
6.6%
6%
5.6%
3.9%
2.8%
All data courtesy of Capital IQ, a division of Standard & Poor's. Data reflects trailing-12-month performance for the quarters ended in the named months.
One Fool says:
It was expected from the time of their acquisition that it would take a while for Quicksilver to digest Rossignol and Cleveland Golf. However, the skateboard, snowboard, and clothing lines are still exceptionally strong brands, enjoying wide distribution beyond the company's own retail stores. With the continued popularity of PacSun(Nasdaq: PSUN) and Zumiez(Nasdaq: ZUMZ) as teen retailers that cater to the surf-and-skate crowd, Quiksilver is still on a smooth downhill run. That probably explains why its recent stock chart resembles the ascending slope of a black-diamond trail.
Competitors:
K2(NYSE: KTO)
Volcom(Nasdaq: VLCM)
Related Foolishness:
Quiksilver Heads for the Slopes
The Quik(silver) and the Dead
Volcomand Zumiez are recommendations ofMotley Fool Hidden Gems. PacSun is a recommendation ofMotley Fool Stock Advisor. Whatever your investing style, you can hit the slopes with a Motley Fool newsletter designed for you!
Fool contributor Rich Duprey owns shares of K2, but does not own any of the other stocks mentioned in this article. You can see his holdings here. The Motley Fool has a disclosure policy.
UPDATE 1-Quiksilver 4th-qtr earnings nearly double
Thu Dec 14, 2006 4:31 PM ET
(Adds sales, other details)
LOS ANGELES, Dec 14 (Reuters) - Quiksilver Inc. <ZQK.N>, a maker of surf-inspired apparel, on Thursday said quarterly earnings nearly doubled, helped by strong demand for its recently-acquired Rossignol ski brand.
The results were in line with a lowered forecast the company gave earlier this year when it said soft summer demand for Rossignol gear and a weak golf market had hurt sales.
Net income for the fourth quarter was $65.3 million, or 51 cents per share, compared with $33.6 million, or 27 cents per share, a year ago.
In September, Quiksilver forecast fourth-quarter earnings of 51 cents per share. Wall Street analysts, on average, were also expecting earnings of 51 cents a share, according to Reuters Estimates.
Excluding stock-based compensation, Quiksilver earned 54 cents a share, it said in a statement.
Net revenue rose 22 percent to $778.4 million, above analysts' average estimate of $747.5 million, according to Reuters Estimates.
Quiksilver, which is based in Huntington Beach, California, also said it was reiterating its 2007 forecast.
In September, the company said it expected to earn 88 cents to 92 cents a share next year. Analysts are expecting earnings of 91 cents a share, according to Reuters Estimates.
Quiksilver shares closed at $14.56 on the New York Stock Exchange.
Thu Dec 14, 2006 4:31 PM ET
(Adds sales, other details)
LOS ANGELES, Dec 14 (Reuters) - Quiksilver Inc. <ZQK.N>, a maker of surf-inspired apparel, on Thursday said quarterly earnings nearly doubled, helped by strong demand for its recently-acquired Rossignol ski brand.
The results were in line with a lowered forecast the company gave earlier this year when it said soft summer demand for Rossignol gear and a weak golf market had hurt sales.
Net income for the fourth quarter was $65.3 million, or 51 cents per share, compared with $33.6 million, or 27 cents per share, a year ago.
In September, Quiksilver forecast fourth-quarter earnings of 51 cents per share. Wall Street analysts, on average, were also expecting earnings of 51 cents a share, according to Reuters Estimates.
Excluding stock-based compensation, Quiksilver earned 54 cents a share, it said in a statement.
Net revenue rose 22 percent to $778.4 million, above analysts' average estimate of $747.5 million, according to Reuters Estimates.
Quiksilver, which is based in Huntington Beach, California, also said it was reiterating its 2007 forecast.
In September, the company said it expected to earn 88 cents to 92 cents a share next year. Analysts are expecting earnings of 91 cents a share, according to Reuters Estimates.
Quiksilver shares closed at $14.56 on the New York Stock Exchange.
AP
Quiksilver Shares Rise After 4Q Report
Friday December 15, 12:32 pm ET
Quiksilver Stock Hits 52-Week High After Company Says 4th-Quarter Earnings Nearly Doubled
NEW YORK (AP) -- Shares of Quiksilver Inc. jumped to a 52-week high on Friday, a day after the surf and sports clothier said earnings nearly doubled in its fiscal fourth quarter.
After the market closed on Thursday, the Huntington Beach, Calif.-based company said net income jumped 95 percent to 51 cents per share, in line with analyst expectations as measured by a Thomson Financial poll.
Revenue grew 22 percent to $778.4 million, beating an analyst consensus of $747.2 million.
The company said its Quiksilver, Roxy, DC and Rossignol brands performed well during the quarter. Quiksilver bought the French ski maker Rossignol in 2005.
"We continue to see the stock as a core holding, with upside should Rossignol exceed expectations, but risk if ski conditions remain poor in Europe and Cleveland golf doesn't recover," said Lazard analyst Todd D. Slater. "With the year back-end loaded to the fourth quarter (in which 70 percent of the earnings are generated), we do not recommend adding to positions at current levels."
He affirmed his "Hold" rating on the brand.
Wachovia analyst John Rouleau, who rates Quiksilver "Outperform," said he expects Quiksilver is at an inflection point now that the Rossignol integration is for the most part complete.
The launch of a lifestyle-based line of Rossignol apparel will likely help the company, he wrote in a note to investors.
"Growing consumer preference for action sports and outdoor performance brands should bode well for the company in 2007 and a successful launch of Rossignol apparel could open up a whole new avenue of growth and turn investor sentiment more positive on the stock," he wrote.
Quiksilver stock responded, rising $1.39, or 9.6 percent, to $15.95 during midday trading on the New York Stock Exchange, after trading as high as $16.08 earlier in the session. The stock has traded between $11.60 and $15.31 over the past year.
Quiksilver Shares Rise After 4Q Report
Friday December 15, 12:32 pm ET
Quiksilver Stock Hits 52-Week High After Company Says 4th-Quarter Earnings Nearly Doubled
NEW YORK (AP) -- Shares of Quiksilver Inc. jumped to a 52-week high on Friday, a day after the surf and sports clothier said earnings nearly doubled in its fiscal fourth quarter.
After the market closed on Thursday, the Huntington Beach, Calif.-based company said net income jumped 95 percent to 51 cents per share, in line with analyst expectations as measured by a Thomson Financial poll.
Revenue grew 22 percent to $778.4 million, beating an analyst consensus of $747.2 million.
The company said its Quiksilver, Roxy, DC and Rossignol brands performed well during the quarter. Quiksilver bought the French ski maker Rossignol in 2005.
"We continue to see the stock as a core holding, with upside should Rossignol exceed expectations, but risk if ski conditions remain poor in Europe and Cleveland golf doesn't recover," said Lazard analyst Todd D. Slater. "With the year back-end loaded to the fourth quarter (in which 70 percent of the earnings are generated), we do not recommend adding to positions at current levels."
He affirmed his "Hold" rating on the brand.
Wachovia analyst John Rouleau, who rates Quiksilver "Outperform," said he expects Quiksilver is at an inflection point now that the Rossignol integration is for the most part complete.
The launch of a lifestyle-based line of Rossignol apparel will likely help the company, he wrote in a note to investors.
"Growing consumer preference for action sports and outdoor performance brands should bode well for the company in 2007 and a successful launch of Rossignol apparel could open up a whole new avenue of growth and turn investor sentiment more positive on the stock," he wrote.
Quiksilver stock responded, rising $1.39, or 9.6 percent, to $15.95 during midday trading on the New York Stock Exchange, after trading as high as $16.08 earlier in the session. The stock has traded between $11.60 and $15.31 over the past year.
Motley Fool
Quiksilver: Another Solid Session
Monday December 18, 4:35 pm ET
By Matthew Crews
Last Thursday, Quiksilver, Inc. (NYSE: ZQK - News) reported strong fourth-quarter earnings. The next day, the company's stock took notice and caught its own wave, lifting it 8% higher. While selling the surf lifestyle over the years has been good to the apparel company and its stock, this Fool wonders how long the honeymoon will last with the newly acquired Rossignol brand.
But first, let us look at Quiksilver's results. Revenues for the fourth quarter were $778.4 million, up 22% from $637.4 million in fourth quarter 2005. Net income was $65.3 million, or $0.51 per diluted share, up 94% from $33.6 million, or $0.22 per diluted share, in fourth quarter 2005. Stock option costs, which weren't expensed in 2005, were $3.3 million in the quarter or $0.03 per diluted share.
For the full year, revenues were up 33% to $2.36 billion from $1.78 billion. Net income was down due to a combination of stock option expenses, which totaled $14.6 million, and a full year of Rossignol operations. Rossignol's seasonally weak summer months weren't included in fiscal 2005's results.
And those recurring summer losses at Rossignol are just one of the added challenges to Quiksilver's business. To management's credit, Rossignol is benefiting from its new stewards as revenues grew 30% for the quarter. It wouldn't surprise me that Rossignol's profits grew even faster with the efforts to streamline operations. But in the end, a weak business will always win over a superior management team.
The hard part of hard goods
Hard goods like snowboards carry lower gross margins than soft goods like t-shirts, which will drag the overall profitability down. Investors should make sure that the operating margins don't follow suit, which means the company has a tougher time earning its cost of capital.
Investors should also watch the cash conversion cycle. Dating or extending credit to retailers to purchase hard good inventory can extend up to 120 days or longer, especially for large pre-season orders such as snowboards. K2 (NYSE: KTO - News), a proxy for a company selling hard goods, has averaged 185 days to convert its products into cash over the past ten years. Pacific Sunwear (Nasdaq: PSUN - News), a proxy for Quiksilver's retail shops, has averaged over the past nine years 51 days for its cash conversion cycle. Quiksilver's cash conversion cycle, which has averaged 137 days over the past ten years, could creep higher with the increased product mix toward hard goods making the company less efficient and less flexible with its capital.
The bottom line is that after several years of retailing both soft goods and hard goods, which included Quiksilver's DC shoes and Lib Tech snowboards, I can attest that selling shoes is more profitable than snowboards. It's too early to tell how Rossignol will add or detract from Quiksilver, but if I was an investor I would keep a close eye on its productivity and profitability levels for any signs of deterioration.
Pacific Sunwear is a Motley Fool Stock Advisor selection.
Fool contributor Matthew Crews welcomes your feedback -- really! He has no financial position in any of the companies mentioned. The Motley Fool has an ironclad disclosure policy.
Quiksilver: Another Solid Session
Monday December 18, 4:35 pm ET
By Matthew Crews
Last Thursday, Quiksilver, Inc. (NYSE: ZQK - News) reported strong fourth-quarter earnings. The next day, the company's stock took notice and caught its own wave, lifting it 8% higher. While selling the surf lifestyle over the years has been good to the apparel company and its stock, this Fool wonders how long the honeymoon will last with the newly acquired Rossignol brand.
But first, let us look at Quiksilver's results. Revenues for the fourth quarter were $778.4 million, up 22% from $637.4 million in fourth quarter 2005. Net income was $65.3 million, or $0.51 per diluted share, up 94% from $33.6 million, or $0.22 per diluted share, in fourth quarter 2005. Stock option costs, which weren't expensed in 2005, were $3.3 million in the quarter or $0.03 per diluted share.
For the full year, revenues were up 33% to $2.36 billion from $1.78 billion. Net income was down due to a combination of stock option expenses, which totaled $14.6 million, and a full year of Rossignol operations. Rossignol's seasonally weak summer months weren't included in fiscal 2005's results.
And those recurring summer losses at Rossignol are just one of the added challenges to Quiksilver's business. To management's credit, Rossignol is benefiting from its new stewards as revenues grew 30% for the quarter. It wouldn't surprise me that Rossignol's profits grew even faster with the efforts to streamline operations. But in the end, a weak business will always win over a superior management team.
The hard part of hard goods
Hard goods like snowboards carry lower gross margins than soft goods like t-shirts, which will drag the overall profitability down. Investors should make sure that the operating margins don't follow suit, which means the company has a tougher time earning its cost of capital.
Investors should also watch the cash conversion cycle. Dating or extending credit to retailers to purchase hard good inventory can extend up to 120 days or longer, especially for large pre-season orders such as snowboards. K2 (NYSE: KTO - News), a proxy for a company selling hard goods, has averaged 185 days to convert its products into cash over the past ten years. Pacific Sunwear (Nasdaq: PSUN - News), a proxy for Quiksilver's retail shops, has averaged over the past nine years 51 days for its cash conversion cycle. Quiksilver's cash conversion cycle, which has averaged 137 days over the past ten years, could creep higher with the increased product mix toward hard goods making the company less efficient and less flexible with its capital.
The bottom line is that after several years of retailing both soft goods and hard goods, which included Quiksilver's DC shoes and Lib Tech snowboards, I can attest that selling shoes is more profitable than snowboards. It's too early to tell how Rossignol will add or detract from Quiksilver, but if I was an investor I would keep a close eye on its productivity and profitability levels for any signs of deterioration.
Pacific Sunwear is a Motley Fool Stock Advisor selection.
Fool contributor Matthew Crews welcomes your feedback -- really! He has no financial position in any of the companies mentioned. The Motley Fool has an ironclad disclosure policy.
heftige Gewinnwarnung bei ZQK
Quiksilver Q1 EPS Declines; Revenues Up 2%; Cuts FY07 Outlook; Shares Drop - Stock To Watch
(RTTNews) - Thursday after the bell, Quiksilver, Inc. (ZQK) reported first quarter EPS of $0.02, compared to $0.15 for the year-ago quarter. Analysts expected EPS of $0.04.
Net revenues for the quarter rose 2% to $552.5 million from $541.1 million in the same quarter last year. Analysts estimated revenues of $540.23 million.
The company revised it's fiscal 2007 annual revenue guidance to roughly $2.45 billion and it's fiscal 2007 annual EPS guidance to $0.53. Previously, the company expected revenue of $2.46 billion and EPS of $0.78. Analysts currently expect EPS of $0.77 on revenue of $2.45 billion for the fiscal year 2007.
Shares of ZQK closed Thursday's regular trading session at $12.96, down $0.46 or 3.43%. In the extended hour trading session, the shares declined 8.87% or $1.15 to $11.81.
Quiksilver Q1 EPS Declines; Revenues Up 2%; Cuts FY07 Outlook; Shares Drop - Stock To Watch
(RTTNews) - Thursday after the bell, Quiksilver, Inc. (ZQK) reported first quarter EPS of $0.02, compared to $0.15 for the year-ago quarter. Analysts expected EPS of $0.04.
Net revenues for the quarter rose 2% to $552.5 million from $541.1 million in the same quarter last year. Analysts estimated revenues of $540.23 million.
The company revised it's fiscal 2007 annual revenue guidance to roughly $2.45 billion and it's fiscal 2007 annual EPS guidance to $0.53. Previously, the company expected revenue of $2.46 billion and EPS of $0.78. Analysts currently expect EPS of $0.77 on revenue of $2.45 billion for the fiscal year 2007.
Shares of ZQK closed Thursday's regular trading session at $12.96, down $0.46 or 3.43%. In the extended hour trading session, the shares declined 8.87% or $1.15 to $11.81.
Quiksilver Headed Nowhere Fast
http://www.fool.com/investing/general/2007/03/09/quiksilver-…
Rich Duprey
March 9, 2007
Surf and ski retailer Quiksilver (NYSE: ZQK) ran headlong into a tree this quarter and tumbled down the slope. Following the release of its first-quarter results last night, the stock dropped more than 11% in after-hours trading. However, investors shouldn't need any hot-doggin' skills to see an opportunity here.
Sure, sales were up a measly 2%, while profits dropped a stomach-turning 87% from last year. Yes, European revenues dropped 3% to $254 million, and now both Europe and the Americas account for nearly equal portions of revenue. Inventories skyrocketed 19% over the course of the year, while receivables ballooned 15% from the year-ago period.
Admittedly, the company has some issues on its hands. Quiksilver has called Rossignol a "tremendous, untapped opportunity." Well, it ought to start tapping real soon. I wasn't too keen on a clothing retailer taking on a hard-goods line of business when Quiksilver acquired the ski-maker, but there was indeed a huge well of opportunity in splashing the popular Rossignol ski name over t-shirts, sweat shirts, jackets, and all sorts of other accoutrements. Quiksilver needs to begin that marketing drive, pronto.
K2 (NYSE: KTO) hasn't had the same problems that Quiksilver has, although it exhibits the same international reach. Quiksilver management's note that it is "experiencing poor reorders, heavy markdowns, and a significant reduction in the order book for next season" suggests that the retailer faces tough slogging in the months ahead.
With that gloomy outlook, what's to like? Actually, the company's loss of nearly $200 million in market cap overlooks numerous bright spots. Revenue handily beat analyst forecasts, which had predicted just $540 million to run through the till. Those stronger overall sales were helped by a healthy 9% increase in revenue from the Americas. The company's teen-oriented brands -- Roxy, DC, and the eponymous Quiksilver -- all sold as or better than anticipated. Those brands should help keep the retailer in line.
Much of Quiksilver's pain resulted from unseasonably warm weather in Europe. The east coast of the U.S. also had warmer weather, but a January cold snap helped K2, for example, experience big sales of its Marmot Mountain line of outdoor clothes in the month. Europe may not get that same effect this season, so feel free to write off Quiksilver's year in Europe as a bust. The market already has.
The market's offering virtually no premium for Quiksilver on a forward price-to-earnings ratio, and the company's price-to-sales ratio is a tempting 0.59 on trailing revenues (factoring in the discount the market provided overnight). With Wall Street expecting little, and baking the bad news into Quiksilver's share price, just about any positive news should make this stock rise.
With its prime brands still selling well, the potential for overseas ski sales to improve next year, and the Rossignol name's continuing marketing opportunities, it seems to this Fool that shares of Quiksilver could be a bargain. Retailers in general have had a rough few months, but the strength of the Roxy and DC brands should provide a foundation of support until the rest of the business turns around. The weather will get cold again, and snow will fall. Most of the trees that sprouted up in Quiksilver's path are behind it now.
Hit the slopes with further Foolishness:
Foolish Forecast: Quiksilver Stumbles on the Slopes
Quiksilver: Another Solid Session
The Quik(silver) and the Dead
Dodging trees and bullets has helped Motley Fool Stock Advisor beat the market by an average of 37 percentage points. Don your armor with a no-cost 30-day trial subscription today.
Fool contributor Rich Duprey owns shares of K2 but does not own any of the other stocks mentioned in this article. You can see his holdings here. The Motley Fool has a disclosure policy.
--------------------------------------------------------------------------------
Legal Information. ©1995-2006 The Motley Fool. All rights reserved.
http://www.fool.com/investing/general/2007/03/09/quiksilver-…
Rich Duprey
March 9, 2007
Surf and ski retailer Quiksilver (NYSE: ZQK) ran headlong into a tree this quarter and tumbled down the slope. Following the release of its first-quarter results last night, the stock dropped more than 11% in after-hours trading. However, investors shouldn't need any hot-doggin' skills to see an opportunity here.
Sure, sales were up a measly 2%, while profits dropped a stomach-turning 87% from last year. Yes, European revenues dropped 3% to $254 million, and now both Europe and the Americas account for nearly equal portions of revenue. Inventories skyrocketed 19% over the course of the year, while receivables ballooned 15% from the year-ago period.
Admittedly, the company has some issues on its hands. Quiksilver has called Rossignol a "tremendous, untapped opportunity." Well, it ought to start tapping real soon. I wasn't too keen on a clothing retailer taking on a hard-goods line of business when Quiksilver acquired the ski-maker, but there was indeed a huge well of opportunity in splashing the popular Rossignol ski name over t-shirts, sweat shirts, jackets, and all sorts of other accoutrements. Quiksilver needs to begin that marketing drive, pronto.
K2 (NYSE: KTO) hasn't had the same problems that Quiksilver has, although it exhibits the same international reach. Quiksilver management's note that it is "experiencing poor reorders, heavy markdowns, and a significant reduction in the order book for next season" suggests that the retailer faces tough slogging in the months ahead.
With that gloomy outlook, what's to like? Actually, the company's loss of nearly $200 million in market cap overlooks numerous bright spots. Revenue handily beat analyst forecasts, which had predicted just $540 million to run through the till. Those stronger overall sales were helped by a healthy 9% increase in revenue from the Americas. The company's teen-oriented brands -- Roxy, DC, and the eponymous Quiksilver -- all sold as or better than anticipated. Those brands should help keep the retailer in line.
Much of Quiksilver's pain resulted from unseasonably warm weather in Europe. The east coast of the U.S. also had warmer weather, but a January cold snap helped K2, for example, experience big sales of its Marmot Mountain line of outdoor clothes in the month. Europe may not get that same effect this season, so feel free to write off Quiksilver's year in Europe as a bust. The market already has.
The market's offering virtually no premium for Quiksilver on a forward price-to-earnings ratio, and the company's price-to-sales ratio is a tempting 0.59 on trailing revenues (factoring in the discount the market provided overnight). With Wall Street expecting little, and baking the bad news into Quiksilver's share price, just about any positive news should make this stock rise.
With its prime brands still selling well, the potential for overseas ski sales to improve next year, and the Rossignol name's continuing marketing opportunities, it seems to this Fool that shares of Quiksilver could be a bargain. Retailers in general have had a rough few months, but the strength of the Roxy and DC brands should provide a foundation of support until the rest of the business turns around. The weather will get cold again, and snow will fall. Most of the trees that sprouted up in Quiksilver's path are behind it now.
Hit the slopes with further Foolishness:
Foolish Forecast: Quiksilver Stumbles on the Slopes
Quiksilver: Another Solid Session
The Quik(silver) and the Dead
Dodging trees and bullets has helped Motley Fool Stock Advisor beat the market by an average of 37 percentage points. Don your armor with a no-cost 30-day trial subscription today.
Fool contributor Rich Duprey owns shares of K2 but does not own any of the other stocks mentioned in this article. You can see his holdings here. The Motley Fool has a disclosure policy.
--------------------------------------------------------------------------------
Legal Information. ©1995-2006 The Motley Fool. All rights reserved.
Text von Upickstocks.com
I'm sure many read the article in yesterdays Wall Street Journal about Quicksilver (ZQK). In summary, they posted a sevenfold drop in fiscal first-quarter profit due to unseasonably warm winter weather. Quarterly earnings for the company -- whose core brands include Roxy, DC Shores and Hawk Clothing -- totaled $2.5 million, or 2 cents per share, down from $18.6 million, or 15 cents per share in the first quarter of 2006. Earlier this month, Quicksilver also cut its 2007 fiscal year earnings outlook to between 75 cents and 78 cents per share from a prior view of 88 cents to 92 cents per share and reduced its revenue projection to between $2.43 billion and $2.46 billion from a previous forecast of $2.5 billion.
The stock started to plunge in after hours trading on March 8. J.P. Morgan analyst Robert Samuel's pulled back his estimates for fiscal 2007 and fiscal 2008, saying the company's guidance may be at risk because many retailers still haven't placed orders for the next ski season. Regardless of ski conditions the WSJ states that some analysts question Quicksilver's recent acquisition of Rossignol. Before I get into my thoughts, I think everyone should understand "you buy great brands when they are cheap." That is the situation we have here.
We know the core Quicksilver, Roxy and DC brands continue to perform well (sales growth of 17% for the first quarter) so I think it's important to look at the recent Rossignol acquisition. They(pioneered the world's best technical skis) have the capability to be a tremendous lifestyle brand with products across a wide range of categories. Furthermore, they have a heritage that is already established which will allow for outerwear and sportswear to be HUGE categories in the future. The brand is very well developed and they have been focused solely on Alpine Skis, some snowboards and some equipment over the years but they have a dominant position in ski bindings, boots, poles, and do a great job with snowboards. Also of importance is their ownership of Cleveland Golf. Cleveland has been stuck in this Alpine infrastructure and they haven't had a chance to control their destiny. Being under the Quicksilver umbrella will allow for the right kind of sales efforts and technical products that will be able to compete with the best.
Quicksilver also has something like 408 retail shops, both company owned and licensed which now market the Rossignol brand. Quicksilver sales and marketing offices will also allow for the products to be distributed together with the other brands. I see a clear opportunity to segment the market, enhance and broaden market efforts, and expand brands into many other categories of products. For example, Roxy skis could be a great opportunity and DC snow boots and snow boards are another.
Don't' let this bad news get in the way of purchasing cheap shares of this great company. I think that 2007 is going to prove to be a very good year and these prices will of been a gift. Most will wait on the sideline until they see better results, but I would rather be early and buy at rock bottom.
I'm sure many read the article in yesterdays Wall Street Journal about Quicksilver (ZQK). In summary, they posted a sevenfold drop in fiscal first-quarter profit due to unseasonably warm winter weather. Quarterly earnings for the company -- whose core brands include Roxy, DC Shores and Hawk Clothing -- totaled $2.5 million, or 2 cents per share, down from $18.6 million, or 15 cents per share in the first quarter of 2006. Earlier this month, Quicksilver also cut its 2007 fiscal year earnings outlook to between 75 cents and 78 cents per share from a prior view of 88 cents to 92 cents per share and reduced its revenue projection to between $2.43 billion and $2.46 billion from a previous forecast of $2.5 billion.
The stock started to plunge in after hours trading on March 8. J.P. Morgan analyst Robert Samuel's pulled back his estimates for fiscal 2007 and fiscal 2008, saying the company's guidance may be at risk because many retailers still haven't placed orders for the next ski season. Regardless of ski conditions the WSJ states that some analysts question Quicksilver's recent acquisition of Rossignol. Before I get into my thoughts, I think everyone should understand "you buy great brands when they are cheap." That is the situation we have here.
We know the core Quicksilver, Roxy and DC brands continue to perform well (sales growth of 17% for the first quarter) so I think it's important to look at the recent Rossignol acquisition. They(pioneered the world's best technical skis) have the capability to be a tremendous lifestyle brand with products across a wide range of categories. Furthermore, they have a heritage that is already established which will allow for outerwear and sportswear to be HUGE categories in the future. The brand is very well developed and they have been focused solely on Alpine Skis, some snowboards and some equipment over the years but they have a dominant position in ski bindings, boots, poles, and do a great job with snowboards. Also of importance is their ownership of Cleveland Golf. Cleveland has been stuck in this Alpine infrastructure and they haven't had a chance to control their destiny. Being under the Quicksilver umbrella will allow for the right kind of sales efforts and technical products that will be able to compete with the best.
Quicksilver also has something like 408 retail shops, both company owned and licensed which now market the Rossignol brand. Quicksilver sales and marketing offices will also allow for the products to be distributed together with the other brands. I see a clear opportunity to segment the market, enhance and broaden market efforts, and expand brands into many other categories of products. For example, Roxy skis could be a great opportunity and DC snow boots and snow boards are another.
Don't' let this bad news get in the way of purchasing cheap shares of this great company. I think that 2007 is going to prove to be a very good year and these prices will of been a gift. Most will wait on the sideline until they see better results, but I would rather be early and buy at rock bottom.
Morgan Stanley upgraded Quiksilver to overweight
Meanwhile, Morgan Stanley is reportedly still encouraged by ski and surf company Quiksilver (nyse: ZQK - news - people ) and upgraded the stock to "overweight" from "equal weight." Quiksilver reported disappointing first-quarter earnings after a warmer than expected winter, but analysts appear to be optimistic about the company's earning potential
Meanwhile, Morgan Stanley is reportedly still encouraged by ski and surf company Quiksilver (nyse: ZQK - news - people ) and upgraded the stock to "overweight" from "equal weight." Quiksilver reported disappointing first-quarter earnings after a warmer than expected winter, but analysts appear to be optimistic about the company's earning potential
Forbes:
Market Scan
Cowabunga! Shares of Quiksilver Surge
Joshua Lipton, 04.03.07, 5:31 PM ET
It's true that Quiksilver's acquisition of French ski manufacturer Rossignol has suffered a very disappointing start, but an analyst said investors should look past that speed-bump and appreciate Quiksilver's underlying earnings power.
In a client note posted Tuesday, Morgan Stanley analyst Brian McGough upgraded his rating on Quiksilver to "overweight" from "equal-weight" and raised his price target $3.50 to $17.
McGough argued that he thinks the market is currently under-appreciating the ski and surf company, forgetting about its underlying earnings potential, the strategic options open to the company, and the private market value to the extent management fails.
Yes, the analyst conceded, the Rossignol acquisition has proven underwhelming, but, he argued, people forget that Quiksilver owns some of the most coveted assets in the surf and skate business.
Furthermore, McGough reasoned, even if Quiksilver gives Rossi away for free yet keeps the debt on its books, then the company gets to earnings per share 10% above the consensus in 2008.
If the earnings rebound doesn't play out, he thinks that there will be either major change within the organization, the portfolio, the balance sheet, or all of the above.
McGough told clients that he thinks all of the bad earnings news is already out for 2007, which the market has grown desensitized to, he argued, given the stock's resiliency around the $11 to $12 level in the face of multiple misses and analyst downgrades.
On the flip side, he wrote, the reaction to even a minor earnings beat, or better yet, a strategic announcement or organizational tweak, could be a catalyst to send the stock higher.
On Tuesday afternoon, shares surged 7.1%, or 82 cents, to $12.31, where they have traded between $10.90 and $16.08 during the past 52 weeks.
Market Scan
Cowabunga! Shares of Quiksilver Surge
Joshua Lipton, 04.03.07, 5:31 PM ET
It's true that Quiksilver's acquisition of French ski manufacturer Rossignol has suffered a very disappointing start, but an analyst said investors should look past that speed-bump and appreciate Quiksilver's underlying earnings power.
In a client note posted Tuesday, Morgan Stanley analyst Brian McGough upgraded his rating on Quiksilver to "overweight" from "equal-weight" and raised his price target $3.50 to $17.
McGough argued that he thinks the market is currently under-appreciating the ski and surf company, forgetting about its underlying earnings potential, the strategic options open to the company, and the private market value to the extent management fails.
Yes, the analyst conceded, the Rossignol acquisition has proven underwhelming, but, he argued, people forget that Quiksilver owns some of the most coveted assets in the surf and skate business.
Furthermore, McGough reasoned, even if Quiksilver gives Rossi away for free yet keeps the debt on its books, then the company gets to earnings per share 10% above the consensus in 2008.
If the earnings rebound doesn't play out, he thinks that there will be either major change within the organization, the portfolio, the balance sheet, or all of the above.
McGough told clients that he thinks all of the bad earnings news is already out for 2007, which the market has grown desensitized to, he argued, given the stock's resiliency around the $11 to $12 level in the face of multiple misses and analyst downgrades.
On the flip side, he wrote, the reaction to even a minor earnings beat, or better yet, a strategic announcement or organizational tweak, could be a catalyst to send the stock higher.
On Tuesday afternoon, shares surged 7.1%, or 82 cents, to $12.31, where they have traded between $10.90 and $16.08 during the past 52 weeks.
DurchsuchenBeitrag zu dieser Diskussion schreiben
Zu dieser Diskussion können keine Beiträge mehr verfasst werden, da der letzte Beitrag vor mehr als zwei Jahren verfasst wurde und die Diskussion daraufhin archiviert wurde.
Bitte wenden Sie sich an feedback@wallstreet-online.de und erfragen Sie die Reaktivierung der Diskussion oder starten Sie eine neue Diskussion.
Investoren beobachten auch:
| Wertpapier | Perf. % |
|---|---|
| +0,53 | |
| +0,63 | |
| -19,15 | |
| +0,88 | |
| 0,00 | |
| -2,71 | |
| +1,06 | |
| +0,19 | |
| +1,59 | |
| +3,13 |
Meistdiskutiert
| Wertpapier | Beiträge | |
|---|---|---|
| 59 | ||
| 55 | ||
| 55 | ||
| 41 | ||
| 23 | ||
| 15 | ||
| 13 | ||
| 12 | ||
| 11 | ||
| 11 |
