free_bee
11 years ago
While the market is hung up on what will happen in the Middle East and when the Federal Reserve will back off its loose monetary policy, many small companies are still growing earnings at significant rates.
One such company is a small footwear and apparel company that is discovering new product channels as a way to increase sales. Rocky Brands (NASDAQ: RCKY) has the highest earnings per share (EPS) growth rate in the footwear industry. The company just posted EPS growth of 700 percent in its recent quarter.
Nonetheless, the stock is undervalued and trades at a price-to-earnings (P/E) ratio of only 11. Due to strong sales, EPS growth and cheap valuation, Rocky Brands has 50 percent price appreciation potential in the next year.
Rocky Brands is a leading designer, manufacturer and marketer of premium quality footwear and apparel marketed under a portfolio of well-recognized brand names including Rocky, Georgia Boot, Durango, Lehigh, and the licensed brand Michelin Footwear.
For the second quarter of 2013, net sales increased 33.8 percent to $59.4 million versus net sales of $44.4 million for the second quarter of 2012. Net income increased 700 percent to $1.8 million, or $0.24 in EPS, for the second quarter of 2013, versus net income of $0.2 million, or $0.03 in EPS, for the second quarter of 2012.
For the first six months of 2013, net sales increased 15.8 percent to $113.1 million versus net sales of $97.7 million in the first half of 2012. Net income increased 170 percent to $2.7 million, or $0.35 in EPS, for the first half of 2013, versus net income of $0.9 million, or $0.13 in EPS, for the first half of 2012.
The second quarter marked the third consecutive quarter of positive sales growth for the retail division. The company continues to make important progress transitioning the majority of its Lehigh business-to-business (B2B) operations to the Internet.
Orders on the company’s websites were up 65 percent from Q2 last year and are expected to see similar trends over the next couple of quarters. Currently, 78 percent of all B2B sales for the company are through web or catalog versus 65 percent for the same period a year ago.
The company has increased productivity in the direct to consumer eCommerce channel by investing in more resources to drive traffic to its Rocky, Georgia and Durango websites. It also added features such as product videos and enhanced search functionality to improve the consumer experience and increase conversion rates.
Rocky Brands is a small cap stock with a market cap of only $118 million. However, the current enterprise value of the stock is $147 million, meaning the stock trades at 80 percent of this value. The stock is considerably undervalued, as it trades at a P/E of 11 and has a current price-to-sales ratio of 0.5. Both of these valuation metrics for Rocky Brands places the stock in the 40th percentile within the apparel goods industry. Additionally, the stock trades at 0.94 of its current book value.
Rocky Brands pays a quarterly dividend of $0.10 for an annual dividend yield of 2.53 percent. There is significant room for increasing dividends, because the payout ratio is only 7 percent.
The stock is up 36 percent in the past year. Rocky Brands has sold off in the past week, so now may be a great time to start to build a position in the stock.
Zacks Investment Research has an outperform rating on the stock. Also, the stock has a Fidelity equity summary score of 8.4 out of 10 for a Bullish outlook.
Rocky Brands expects to hit EPS of $1.42 in 2013, with EPS projected to increase 15.5 percent to $1.64 in 2014. Based on a conservative P/E of 15, Rocky Brands has a 12-month price target of $24.60, an increase of 50 percent from the current stock price.
http://www.investingdaily.com/18291/walk-the-rocky-road-to-profits/
Emerging Growth
11 years ago
At EmergingGrowth.com... Competition could be tough in the corporate world. There are occasions when a new business model disrupts the current ecosystem. Suddenly, the industry leader is caught unprepared leading to its demise. However, there are businesses that have constantly adapted to the ever-changing competitive landscape. That’s what Rocky Brands (NASDAQ: RCKY) did.
Based in Nelsonville Ohio, Rocky Brands designs, manufactures and markets footwear and apparel under a portfolio of brand names such as Rocky, Georgia Boot, Durango, Lehigh and other licensed brands Michelin and Mossy Oak. The company has been around since 1932, although it was called William Brooks Shoe at that time and was named after its founder.
At present, it has 10,000 retail store locations in the United States and Canada. It also does business through its website, rockybrands.com. Its largest clients include Tractor Supply Co. (NASDAQ: TSCO), Bass Pro, Dick’s Sporting Goods (NYSE: DKS) and AAFES.
Over the last 4 years, its net income has grown from $1.17 million to $8.31 million. In the recent quarter, it reported sales of $62.9 million, an increase of 4.5% compared to the same period last year. Operating income amounted to $7.9 million, or operating margin of 10.9%. This is slightly higher than the previous year’s operating income of $7.6 million and margin of 10.7%. Overall, net income reached $5.4 million, an increase of 4% compared to the prior year.
For the fiscal year 2013, analysts expect Rocky Brand to post earnings per share of $1.63. This translates to per share earnings growth of 19%, higher than the forecasted 5-year average growth rate of 10%. In contrast, K-Swiss (NASDAQ: KSWS) is forecasted to post per loss of $0.07 for the same period. For the next 5 years, analysts are more bullish over the latter’s prospects with an estimated net income growth of 19%. Another peer, Skechers (NYSE: SKX)is estimated to register earnings per share of $0.85 for the current fiscal year. This is double than the prior year’s results. Skechers is expected to post 15% growth for the next 5 years.
*MARINE 1*
13 years ago
Date : 04/26/2011 @ 4:00PM
Rocky Brands, Inc. Announces First Quarter Fiscal 2011 Results
Rocky Shoes (NASDAQ:RCKY)
Intraday Stock Chart
Today : Wednesday 27 April 2011
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Rocky Brands, Inc. (NASDAQ: RCKY) today announced financial results for its first quarter ended March 31, 2011.
First quarter 2011 net income improved to $0.5 million, or $0.07 per diluted share versus a net loss of $0.6 million, or ($0.10) per diluted share in the year ago period. The earnings per share improvement was attained even with 1.9 million more weighted average common shares outstanding, an increase of 33.5% shares outstanding, as a result of the Company's follow-on common stock offering in May 2010. Gross margin improved 340 basis points to 36.8% compared to 33.4% last year. Net sales were $52.3 million for the first quarter versus net sales of $56.1 million in the first quarter of 2010, due to reduced sales under military contracts.
Mike Brooks, Chairman and Chief Executive Officer, commented, “Our sales and marketing strategies continued to drive solid gains for our company owned brands in the wholesale channel. Consumer demand for our new product lines has been very positive and helped to partially offset the expected sales decline in our military segment and replace the Dickies licensed business which, as previously announced last year, ceased as of the end of 2010. At the same time, our retail segment delivered an improved operating performance as a result of the ongoing migration to more web based transactions. The combination of higher margin sales, our improved operating platform, and significantly lower interest expense, which is the result of our May 2010 stock offering and our October 2010 new credit facility, allowed us to report our first profitable first quarter in three years. We expect these trends will continue to fuel improved year over year earnings during the remaining quarters of 2011.”
*MARINE 1*
14 years ago
Rocky Brands, Inc. Announces Third Quarter Fiscal 2010 Results
Date : 10/21/2010 @ 4:00PM..........RCKY
Rocky Brands, Inc. Announces Third Quarter Fiscal 2010 Results
Rocky Shoes (NASDAQ:RCKY)
Intraday Stock Chart
Today : Thursday 21 October 2010
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Rocky Brands, Inc. (Nasdaq: RCKY) today announced financial results for its third quarter ended September 30, 2010.
For the third quarter of 2010, net sales increased 12.3% to $74.8 million versus net sales of $66.6 million in the third quarter of 2009. Net income for the third quarter of 2010 increased $1.9 million to $4.7 million, or $0.63 per diluted share versus net income of $2.8 million, or $0.50 per diluted share a year ago.
Mike Brooks, Chairman and Chief Executive Officer, commented, “During the third quarter we continued to experience positive business trends similar to the first six months of 2010 which allowed us once again deliver improved profitability versus the year ago period. This included higher sales levels in both our wholesales
and military segments, a 40 basis point increase in wholesale gross margin, and better operating expense leverage. We are particularly pleased with our wholesale growth which is being driven by demand for our work footwear. We also recently secured a new credit facility that will further reduce our interest expense approximately $2 million next year and free up capital to expand our business. Looking ahead, we are excited about both our near and long-term growth prospects and we are confident we have the right pieces in place to capitalize on the many opportunities still in front of us.”
*MARINE 1*
14 years ago
Rocky Brands, Inc. to Broadcast Review of Third Quarter Fiscal 2010 Financial Results over the Internet
Rocky Shoes (NASDAQ:RCKY)
Historical Stock Chart
1 Month : September 2010 to October 2010
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Rocky Brands, Inc. (Nasdaq: RCKY) today announced that the Company’s conference call to review third quarter fiscal 2010 financial results will be broadcast live over the Internet
on Thursday, October 21, 2010 at 4:30 pm Eastern Time and may be accessed through Rocky’s website, www.rockybrands.com. To listen to the webcast, please go to the website at least 15 minutes prior to the start time to register and download any necessary software.
About Rocky Brands, Inc.
Rocky Brands, Inc. is a leading designer, manufacturer and marketer of premium quality footwear and apparel marketed under a portfolio of well recognized brand names including Rocky Outdoor Gear®, Georgia Boot®, Durango®, Lehigh®, and the licensed brands Michelin® and Mossy Oak®.
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