Retailer Quiksilver (NYSE:ZQK) believes revenue and earnings should easily exceed expectations in their next quarterly report, although guidance is uncertain because of the ongoing recession.
Canaccord said, "The surf-themed retailer is riding a wave of improving top and bottom lines, despite weakness in its biggest coastal markets (California, Florida and Hawaii). Quiksilver announced yesterday it anticipates revenue of $492-497 million for the period ended October 31; that’s above the $462.8 million that
analysts had expected. It reaffirmed an earlier forecast that its earnings per share will be in the mid-single digits, when analysts had expected earnings of only $0.06 per share. In spite of this good pre-release, the company reiterated that visibility into fiscal 2011 revenues and earnings remains limited due to global economic
conditions. Full results are due on December 16.
"Separately, Quicksilver announced a private offering of 200 million euros ($263.6 million) in senior notes due 2017. The retailer said that proceeds from the notes offered by European subsidiary Boardriders SA will be used to refinance existing European term loans and for related fees and expenses. Quiksilver anticipates about $13 million in charges related to the refinancing during its next quarter."
Quiksilver closed Tuesday at $4.30, dropping by $0.01, or 0.23 percent.
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