Destination Maternity Hits Estimates, but GAAP Results Lag Last Year's

Destination Maternity (Nasdaq: DEST ) reported earnings on July 26. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q3), Destination Maternity met expectations on revenues and earnings per share.

Compared to the prior-year quarter, revenue dropped and GAAP earnings per share contracted significantly.

Margins shrank across the board.

Revenue details
Destination Maternity reported revenue of $138.8 million. The one analyst polled by S&P Capital IQ anticipated a top line of $138.8 million on the same basis. GAAP reported sales were 5.3% lower than the prior-year quarter's $146.7 million.

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

EPS details
EPS came in at $0.52. The two earnings estimates compiled by S&P Capital IQ predicted $0.52 per share. GAAP EPS of $0.52 for Q3 were 28% lower than the prior-year quarter's $0.72 per share.

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

Margin details
For the quarter, gross margin was 54.6%, 60 basis points worse than the prior-year quarter. Operating margin was 9.0%, 200 basis points worse than the prior-year quarter. Net margin was 5.0%, 140 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $127.3 million. On the bottom line, the average EPS estimate is $0.35.

Next year's average estimate for revenue is $540.2 million. The average EPS estimate is $1.41.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 66 members out of 89 rating the stock outperform, and 23 members rating it underperform. Among 24 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 19 give Destination Maternity a green thumbs-up, and five give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Destination Maternity is outperform, with an average price target of $25.00.

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