Timberland Company (TBL) recently beat analyst estimates for the third consecutive quarter.
In those three quarters, this Zacks #1 Rank stock has beaten the Zacks Consensus Estimate by an average of 43.4%.
Company Description
Timberland designs, develops, markets, and distributes footwear, apparel, and accessories for men, women, and children under the Timberland, Timberland PRO, Timberland Boot Company, SmartWool, howies, and IPATH brands.
Strong First-Quarter Results
On April 29, Timberland reported revenue of $317.0 million, up 6.9% from the year-earlier period. The company earned $0.47, topping the Zacks Consensus Estimate of $0.28.
The company’s better-than-expected results were driven by solid top-line growth across all of its geographic segments. The company’s gross margin expanded by 370 basis points thanks to a more favorable product and sales channel mix, benefits from foreign exchange, and lower product costs.
Analysts Boost Estimates
After the company’s strong first-quarter report, analysts covering the stock increased their estimates for the next two years. The Zacks Consensus for 2010 is up 24 cents, or 23.1%, to $1.28, while the Zacks Consensus for 2011 is climbed 27 cents, or 23.3%, to $1.43.
Financial Health
The company ended the first quarter with $238.5 million in cash and no debt. Inventory was $136.9 million, down 15.9% versus the year-ago quarter, reflecting the company’s continued focus on working capital.
Additionally, the company repurchased approximately 1.0 million shares in the first quarter of 2010 at a cost of approximately $20.0 million.
The Chart
Timberland shares are up 77% in the last twelve months. The stock experienced a 9% pullback in the February sell-off, and an 11% pullback in last week’s plunge. The stock has recovered some of those losses and is just about a $1.00 shy of its 52-week closing high.
