Movado Group Inc. (
MOV) as seen sharp increases in estimates over the past quarter. Year-over-year earnings growth is currently projected at 27% for the next fiscal year.
Company Description
Movado Group is a designer, manufacturer and distributor of quality watches with prominent brands sold in almost every price category comprising the watch industry. The company's watch brands include Movado, Concord, and ESQ. Movado operates 30 boutiques and 32 outlet stores.
The company is headquartered in Paramus, N.J., carries a market cap of $335 million, and has 1,500 employees.
Earnings Estimates Surge
Earnings estimates for the current year are up 6.5%, to $1.81, in the past 2 months. The consensus for next year is $2.30 per share, up dramatically from $1.91. Given theses levels growth rates for this year and next are 6% and 27%, respectively.
The growth prospects are attractively priced with a PEG ratio of 0.76.
Full-Year Expectations Unchanged
On Sep 4 Movado announced second-quarter results that included net sales of $130 million. In a tough economy, sales only slid 1.1%, when excluding discontinued products.
Movado has been able to cut costs and saw an increase in gross profit margin to 64.75 of sales, up from 59.8%
Earnings per share for the quarter were 39 cents. Analysts were expecting 41 cents making the a disappointment, but the company reaffirmed its full-year guidance. Movado expects earnings per share to be between $1.65 and $1.72 for the year.
The Chart
Shares have been sold off sharply and could present a tremendous value. The stock is currently trading at multi-year lows. Take a look at the chart below.
