Quiksilver’s (ZQK) Fiscal 3Q Earnings Rise Above Analyst’s Views

September 3, 2010, 2:10 PM

Quiksilver Inc.’s (NYSE: ZQK) fiscal third-quarter net income topped estimates of analysts due to cost cuts offsetting sagging revenue. The teen clothing company said on Thursday that it earned $8.3 million, or 6 cents per share in the three months ended in July. At the same time last year income was $1.4 million or a penny per share.

The Huntington Beach, Calif.-based company is the maker Quiksilver, Roxy, DC, Lib Tech, and Hawk brands. Quiksilver said if it was not for one-time accounting charges, the Company would have made 8 cents per share. Analysts polled by Thomson Reuters estimated an average 4 cents per share.

Quiksilver CEO Robert McKnight Jr. said, “Our team executed well in an economic environment that continues to present significant challenges around the world.” Management predicts another double-digit revenue decline for its fiscal fourt quarter which ends in October. The company indicated its per-share earnings will be in the 4-6 cents range. Quiksilver has been trying to whittle its debt. As of July 31, the debt stood at $843 million. Since then, the company has retired another $140 million in debt by swapping 31.1 million shares of its stock.

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