Iconix Brand Group, Inc. (NASDAQ: ICON)
Iconix Brand Group, Inc. (ICON), a brand management company yesterday reported third quarter 2015 financial results, and announced guidance for 2016. Licensing revenue numbers were down 3% compared to third quarter 2014. Adjusted EBITDA was down 53% compared to third quarter 2014. Most overall numbers decreased compared to third quarter 2014. However due to previous news that the company was going to miss third quarter numbers analysts already had low expectations for ICON. ICON winded up beating analyst earnings per share estimates by $0.12, posting $0.33 per share versus analyst estimates of $0.21.
Iconix Brand Group, Inc. CEO Comments
“I would like to reiterate that the underlying fundamentals of our business are strong,” said Peter Cuneo, Chairman and Interim Chief Executive Officer of Iconix. “We have gone through a difficult transition period, but Iconix continues to have significant business strengths including its diversified portfolio of consumer brands, profitable business model and strong free cash flow generation. All of us at the Company are focused on capitalizing on these strengths and addressing the issues that have impacted more recent performance to improve our results and enhance value for shareholders.” PR Newswire
ICON Technical Analysis
ICON gapped up in price yesterday to $7.89, up from the prior day’s close of $6.90, which is a 14% increase on the favorable news. Taking a look at the daily chart, we can see the last time ICON traded above this price level was on November 5th, when it closed at $16.14. On that occasion, ICON tanked all the way to lows of $6.60 the very next day of trading, equivalent to a 59% drop in price. The drop in price was based on ICON announcing they were going to reduce guidance numbers for the full year, and would be restating previous financial statements. Looking at a yearly chart, we can see that ICON has been on a steady decline all year. However, this drop may have been oversold and ICON may have a little rebound of these lows. ICON does have a 42.84 million share float and is trading almost 3 times the normal daily trading volume. ICON did reach pre market highs of $8.30, but gave back $0.41 at the open , or equivalent to 5%. For trading purposes, my entry point would have been $8.00 looking for a run through $8.50. My stop loss would have been $7.85, fearing anything below that and the stock would start to fill in the gap up.
Iconix Brand Group, Inc., a brand management company, owns, licenses, and markets a portfolio of consumer brands across womens, mens, entertainment, and home primarily in the United States and internationally. The company brand portfolio includes Candies, Bongo, Badgley Mischka, Joe Boxer, Rampage, Mudd, London Fog, Mossimo, Ocean Pacific, Danskin, Rocawear, Cannon, Royal Velvet, Fieldcrest, Charisma, Starter, Waverly, Ecko Unltd, Marc Ecko Cut & Sew, Zoo York, Sharper Image, Umbro, and Lee Cooper brand names. It also has interest in Artful Dodger, Material Girl, Peanuts, Ed Hardy, Truth or Dare, Billionaire Boys Club, Ice Cream, Modern Amusement, Buffalo, Nick Graham, Hydraulic, and Strawberry Shortcake brands. Iconix Brand Group, Inc. licenses its brands directly to retailers and wholesalers for use across a range of product categories, including apparel, footwear, fashion accessories, sportswear, home products and décor, beauty and fragrance, consumer electronics, and novelty products. It sells its brands across various distribution channels from the mass tier to the luxury market, as well as through various media outlets. The company was formerly known as Candies, Inc. and changed its name to Iconix Brand Group, Inc. in July 2005. Iconix Brand Group, Inc. was founded in 1978 and is based in New York, New York. Yahoo Finance