Watch maker Movado (NYSE:MOV) blew away Wall Street’s expectations on Tuesday with an 83% surge in second-quarter profits and by hiking its full-year financial targets well above forecasts.
The bullish results and rosier guidance from the Paramus, N.J. company sent its red-hot shares soaring double-digits ahead of the opening bell.
Movado, which licenses watch brands including Tommy Hilfiger and Lacoste, said it earned $8.1 million, or 32 cents a share, last quarter, compared with a profit of $4.4 million, or 18 cents a share, a year earlier. Analysts had been calling for EPS of just 18 cents.
However, revenue increased 4.2% to $118 million, trailing the Street’s view of $122 million. Sales were up 7.6% on a constant dollar basis. Gross margins expanded to 55.7% from 53.8%.
“Our positive momentum continued in the second quarter driven by the ongoing success of our strategic initiatives, which fueled a solid increase in net sales, expansion in gross margin and a more than doubling of operating income,” CEO Efraim Grinberg said in a statement.
Movado impressed the Street by upgrading its full-year EPS outlook to about $1.40, up from $1.15 previously and easily surpassing estimates from analysts for $1.24.
Movado now sees net income jumping about 45% to $35.5 million to $36 million, compared with $29 million to $29.7 million previously.
Management expects to generate full-year sales of $510 million, up from its earlier call for $505 million to $510 million. Analysts had been forecasting sales of $504.5 million.
Shares of Movado soared 14.91% to $34.60 ahead of the opening bell, leaving them on track to add onto their 2012 rally of 66%. Movado’s shares have climbed about 120% over the past 12 months.