The Deipnosophist

Where the science of investing becomes an art of living

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Location: Summerlin, Nevada, United States

A private investor for 20+ years, I manage private portfolios and write about investing. You can read my market musings on three different sites: 1) The Deipnosophist, dedicated to teaching the market's processes and mechanics; 2) Investment Poetry, a subscription site dedicated to real time investment recommendations; and 3) Seeking Alpha, a combination of the other two sites with a mix of reprints from this site and all-original content. See you here, there, or the other site!

25 May 2005

Phillips Van Heusen/PVH

Phillips Van Heusen/PVH reports Q1 (Apr) earnings of $0.46 per share, $0.04 better than the Reuters estimates consensus of $0.42; revenues rose 24.8% year/year to $472.1 million vs. the $462.1 million consensus.

The company issues upside guidance for Q2, sees EPS of $0.38-0.39 vs. $0.33 consensus; sees Q2 revs of $420-425 million vs. $397.24 million consensus. Also issues upside guidance for FY06, sees EPS of $1.68-1.73 vs. $1.61 consensus; sees FY06 revs of $1.8-1.82 billion vs. 1.76 billion consensus. The company states, "Our 2005 guidance continues to be based on a conservative view of the second half of the year and we have not raised, at this time, our earnings estimates for the third and fourth quarters." Also states that if the current trends continue they would expect to exceed present Q3, Q4 guidance. The company continues to expect "at least 15-20%" growth per year." The company states that the they do not expect to be impacted by the potential Chinese tariffs, as they already have adjusted sourcing to protect themselves. (At present, roughly 20-25% of company's sourcing comes from China.)

[click to enlarge]

The chart looks great -- 6 month base with an obvious breakout at ~$30 (occurring today, with a high trade of $30.75 and volume that is already ~250% of average daily volume). So I asked Trader Dan. He responded with, "... looks good! What's going on in this sector? Could it be that business casual died with .com and pent-up demand is just now coming in?"

With the successes of MW, JOSB, and others in this group, I understand his comments. I am long.

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