Saturday, December 1, 2012

Are You Expecting This from Vera Bradley?

Vera Bradley (Nasdaq: VRA  ) is expected to report Q3 earnings on Dec. 5. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Vera Bradley's revenues will expand 11.6% and EPS will increase 18.8%.

The average estimate for revenue is $135.2 million. On the bottom line, the average EPS estimate is $0.38.

Revenue details
Last quarter, Vera Bradley chalked up revenue of $123.0 million. GAAP reported sales were 19% higher than the prior-year quarter's $103.8 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, EPS came in at $0.33. GAAP EPS of $0.33 for Q2 were 2.9% lower than the prior-year quarter's $0.34 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 55.8%, 170 basis points worse than the prior-year quarter. Operating margin was 17.7%, 440 basis points worse than the prior-year quarter. Net margin was 10.9%, 220 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $542.3 million. The average EPS estimate is $1.65.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 83 members out of 93 rating the stock outperform, and 10 members rating it underperform. Among 26 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 23 give Vera Bradley a green thumbs-up, and three give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Vera Bradley is outperform, with an average price target of $32.38.

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