Zacks_Analysts' Blog : Iconix Beats, Reaffirms Guidance - Analyst Blog

Iconix Brand Group Inc., a brand management company, delivered fourth quarter and full year 2010 results.

New York-based Iconix’s earnings grew 10% in the quarter to 33 cents a share from 30 cents a share in the year-ago period, demonstrating steady organic growth in its core businesses and potential opportunities in its recently acquired "Peanuts" (Charlie Brown, Snoopy, etc.) brand. Earnings also outpaced the Zacks Consensus Estimate of 29 cents.

On a reported basis, including one-time items, earnings came in at $0.30 a share versus $0.27 delivered in the prior-year quarter.

Iconix has reaffirmed its fiscal 2011 adjusted earnings forecast at $1.53 - $1.58 per share. The Zacks Consensus Estimate of $1.55 per share for the fiscal is at the middle of the company’s guidance. On a reported basis, the company projects earnings of $1.40 to $1.45 per share.

Total revenue for the quarter jumped 34% to $88 million from $65.8 million in the year-ago period, reflecting double-digit sales growth in the direct-to-retail segment. The company experienced strength at Wal-Mart Stores Inc. (WMT), Kohl’s Corp. (KSS) and Costco Wholesale Corporation (COST), offset by poor performance at Mudd, Bongo, Waverly and Fieldcrest stores.

Iconix has also reaffirmed its revenue target at $340 million to $350 million. On a year-ago basis, EBITDA spiked 40% to $58.6 million in the quarter.

The company exited the year with free cash flow of $45.4 million. Capital expenditures for the quarter were $4 million.

For fiscal 2011, the company expects free cash flow in the range of $160 million to $165 million.