Fossil shares soar following strong quarterly earnings
Shares of Fossil Group Inc. climbed more than 9% in after-hours trade Tuesday following the company's stronger-than-expected quarterly earnings report. The watch designer reported net income of $6 million, or 12 cents a share, in the second quarter, compared with $54.6 million, or $1.12 a share, in the year-earlier period. Analysts polled by FactSet on average expected EPS of 9 cents. Revenue for the three-month period fell to $685.4 million from $740 million a year ago, but beat the consensus estimate of $672 million. The company said it is now expecting sales to decline by between 1.5% and 5% in fiscal 2016. It cast a wide EPS guidance, in the range of $1.80 to $2.65 a share, compared with the Street view of $2.03. Shares of Fossil soared in extended trading following the results, most recently surpassing $33.19 a share. As of Tuesday's close, they had declined by 23% in the past three months and by 53% in the past year, vastly underperforming the S&P 500 , which is up more than 5% both in the past three months and the past year.
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