Movado has surpassed half of its recent wins
Movado Group, Inc. (NYSE: MOV) is an American watchmaker and is known for his museum clock. The company designs, sources and sells watches, jewelry and other accessories worldwide for various brands, including Movado, MVMT, Olivia Burton, Ebel, Concord, Coach, Tommy Hilfiger, Hugo Boss, Lacoste and Scuderia Ferrari. MOV also operates Movado branches in the US and Canada.
Movado reintroduced its dividend earlier this year. The company resolved to pay a cash dividend of $ 0.10 per share on Jan. 11 after suspending the dividend for 2020. Movado now has a forward dividend of $ 0.40 and a dividend yield of 1.58%. Additionally, on March 18, MOV announced that it would announce its fourth quarter and fiscal 2021 results on Thursday, March 25.
Movado only beat estimates in half of its most recent earnings reports. For the fourth quarter of 2020, MOV missed analysts’ estimates by a margin of $ 0.06 and reported earnings per share (EPS) of $ 0.15. For the first quarter of 2021, Movado stock slipped its earnings per share to – $ 0.56 and fell short of expectations with a margin of $ 0.36. For the second quarter of 2021, MOV recorded earnings up to $ 0.07 per share. Movado also beat estimates by $ 0.24. In its latest quarterly report, Movado reported earnings per share of $ 0.70, exceeding expectations by $ 0.22.
Movado shares are up 168% year over year. The price of MOV shares has also risen 47% since the start of the year and has tripled since falling to its multi-year low of $ 8.12. Movado stock is currently trading within a chip shot of its recent annual high of $ 26.22.
Basically, MOV lacks the bottom line, but it has potential as a turnaround growth stock game. Over the past year, Movado has suffered significant losses in both sales and net income. The company’s revenue declined $ 180 million in the last twelve months, bringing total revenue to $ 519 million and essentially wiping out growth over two years. Movado also lost $ 180 million on the bottom line, bringing the total net losses down to $ 138 million. However, the annual surplus has been declining since 2019.
Movado holds $ 163.52 million in cash, roughly $ 40 million more than debt. This positive rate gives the company the freedom and time it needs to recover from its huge losses during the COVID-19 pandemic. Overall, from a predominantly fundamental perspective, Movado shares are on the safer side of speculative games.