Quiksilver Inc. (NYSE:ZQK) posted better-than-expected third-quarter earnings per share, as revenue came in just shy of estimates.
The apparel company forecast fourth-quarter earnings to fall in the mid-single-digits, as revenue comes in the mid-teens on a percentage basis. The forecast was worse-than-expected, as analysts polled by Thomson Reuters had predicted earnings of 7 cents a share on a 9% decline in revenue.
For the third quarter, Quicksilver reported a profit of $8.3 million or 6 cents a share, compared with year-ago earnings of $1.3 million or a penny per share. Adjusted earnings rose to 8 cents a share, compared with earnings of 3 cents in the third quarter of last year.
Revenue fell 12% to $441.5 million, compared with year-ago sales of 501.39 million.
Analysts polled by Thomson Reuters had predicted earnings of 3 cents on revenue of $442.95 million.
Gross margin widened from 52.3%, up from 46.7%, one year ago.
"We're very pleased to again deliver financial results that exceeded our prior expectations. Our team executed well in an economic environment that continues to present significant challenges around the world,” said Chairman and CEO Robert B. McKnight, Jr. in a release. “We're also delighted to report substantial continued improvement to our capital structure, especially after completing the debt-for-equity exchange with Rhone in early August."
Shares of Quiksilver rose 17 cents or 4.33% in Thursday’s session, closing the day at $4.10. The stock was down 20 cents or 4.88% after the market closed.