VF Q2 Results Beat Estimates

(RTTNews) - VF Corp. (VFC) Friday announced a 24 percent decline in second quarter net income to $170.8111 million from $157.682 million in the prior year. Earnings per share increased to $0.40 from $0.36 last year. Earnings per share was up 22 percent on a currency neutral basis and up 11 percent on a reported basis compared with last year's same period. The earnings was benefitted $0.02 from a lower tax rate relative to 2014, which included discrete items related to the settlement of prior years' tax audits.

On average, 23 analysts polled by Thomson Reuters expected the company to earn $0.36 per share. Analysts estimates usually exclude special items.

Total revenue increased 5 percent to $2.513 billion from $2.402 billion in the previous year. On a currency neutral basis, revenue rose 10 percent from the prior year. Analysts were looking for $2.46 billion in revenue.

Looking ahead to the full year 2015, the company expects earnings per share, on a currency neutral basis, is now expected to increase 15 percent compared to an adjusted earnings of of $3.08 in 2014. Earlier the company was looking for 14 percent growth.

On a reported basis, earnings for the full year is expected to increase by 5 percent to $3.22 compared to adjusted earnings per share of $3.08 in 2014. Earlier projection in May was for a growth of 4 percent.

Wall Street expects $3.21 per share on revenue of $12.68 billion.

Full year revenue expectations are unchanged, with an 8 percent increase on a currency neutral basis and up 3 percent on a reported basis.

Revenue for the Outdoor & Action Sports coalition is expected to increase at a low double-digit currency neutral percentage rate (up mid single-digit reported). Jeanswear is now expected to grow at a mid single-digit currency neutral rate (up low single-digit reported) compared with the previous expectation of a low single-digit increase. Imagewear and Sportswear coalition revenue is expected to grow at a mid single-digit currency neutral percentage rate. Contemporary Brands revenue is now expected to be down at a mid single-digit currency neutral rate (down at a high single-digit reported rate) versus the previous expectation of nearly flat currency neutral revenue (down at a mid single-digit reported rate).

Further, the VF's Board of Directors declared a quarterly dividend of $0.32 per share, payable on September 18 to shareholders on record on September 8, 2015.