Revolve Group, Inc. (NYSE:RVLV) is scheduled to report Q3 earnings results after markets close for trading on November 11, 2020.
The company is expected to report earnings of $0.14/share on revenue of $158.3 million. The consensus earnings per share (EPS) of $0.14/share is based on a poll of 16 analysts and represents a growth in eps of 6.2% over the same quarter last year, when the company reported earnings of $0.13/share.
The revenue forecast of $158.3 million based on a poll of 14 analysts implies a year-over-year (YoY) growth in revenue of 2.7%. Last year the company reported $154.2 million in revenue for the quarter.
| Metric | Expected | Prior Year | YoY Change |
|---|---|---|---|
| Revenue | $158.30 | $154.20 | 2.7% |
| EPS | $0.14 | $0.13 | 6.2% |
Earnings Call Trends
Management has been great at managing analyst expectations historically. The company has a perfect record over the last 5 tracked quarters of exceeding earnings guidance.
What are your expectations from Revolve Group, Inc. for earnings this quarter? Let us know in the comments!
| Quarter | Expected | Reported | Surprise | Result |
|---|---|---|---|---|
| Q2, 2020 | $0.03 | $0.20 | 688.0% | Beat |
| Q1, 2020 | $0.04 | $0.06 | 53.5% | Beat |
| Q4, 2019 | $0.11 | $0.13 | 18.5% | Beat |
| Q3, 2019 | $0.11 | $0.13 | 15.9% | Beat |
| Q2, 2019 | $0.20 | $0.26 | 31.5% | Beat |
In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report. After the last earnings report for the period ending June 30, 2020, the stock price reacted by increasing 27.6%.
| Report Date | Price Day Prior | Price Next Day | Change % | Result |
|---|---|---|---|---|
| August 12, 2020 | $18.65 | $23.80 | 27.6% | Increase |
| May 13, 2020 | $14.49 | $14.93 | 3.0% | Increase |
| February 25, 2020 | $18.86 | $16.78 | −11.0% | Decline |
| November 7, 2019 | $19.66 | $16.33 | −16.9% | Decline |
The other question to consider is one of earnings manipulation. There is a lot of pressure on management each quarter to deliver on earnings expectations. The Beneish M-Score is a statistical model that provides some insight into whether the company might be manipulating earnings. With a Beneish M-Score of −3.80, the model suggests that the company is not likely to be an earnings manipulator. A value of −3.80 implies a 0.0% chance of earnings manipulation.
Fundamentals And Technical Analysis
Revolve Group, Inc. is currently trading at $21.19/share, up 11.4% for the day. The company is trading at approximately 85.9% of its 52-week high of $24.41/share. The company’s stock price is down −11.0% since the last earnings report and up 15.5% over the previous week. The company’s 14 Day Relative Price Index (RSI) of 53.95 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.
The current share price implies a price-to-earnings (P/E) multiple of 36.38 and a forward P/E multiple of 36.12.
Revolve Group, Inc.’s current share price also implies a price-to-book (P/B) multiple of 8.73. The following table summarizes some other key fundamental ratios:
| Metric | Value |
|---|---|
| Last Reported Fiscal Period Key | FY2020.Q2 |
| Period End Date | June 30, 2020 |
| Stock Price (Current) | $21.19 |
| P/E Ratio | 36.4x |
| P/E Ratio (Fwd) | 36.1x |
| PEG Ratio | 0.1 |
| Total Debt / Total Capital | 1.8% |
| Levered Free Cash Flow | $81.18 million |
| EV / EBITDA | 23.0x |
Revolve Group, Inc. is a small-cap stock with a market capitalization of $1.323 billion and a total enterprise value of $1.196 billion. The company operates in the Consumer Discretionary sector and the Internet & Direct Marketing Retail industry.
Revolve Group, Inc. operates as an online fashion retailer for consumers in the United States and internationally. The company operates through two segments, REVOLVE and FORWARD. It operates a platform that connects consumers and global fashion influencers, as well as emerging, established, and owned brands. The company provides women’s apparel, footwear, accessories, and beauty styles under established and emerging brands, as well as owned brands. It also offers various luxury brands. The company was formerly known as Advance Holdings, LLC and changed its name to Revolve Group, Inc. in October 2018. Revolve Group, Inc. was founded in 2003 and is headquartered in Cerritos, California.
