Iconix Brand Group posted third-quarter results that bested Wall Street’s estimates, but investors weren’t pleased with the lowered full-year 2016 guidance.

For the three months ended Sept. 30, net income was $15.2 million, or 27 cents a diluted share, against a net loss of $5.4 million, or 11 cents, a year ago. On an adjusted basis, diluted EPS for the quarter was 19 cents. Licensing revenue slipped 0.4 percent to $90.9 million from $91.3 million. The year-ago quarter included $1.2 million of licensing income from the Badgley Mischka brand, which the company sold in the first quarter of 2016. The company said its non-GAAP free cash flow in the quarter was $24.8 million.

Wall Street was expecting adjusted EPS of 17 cents on revenues of $88.9 million.

By segment, women’s licensing revenue was down 12.6 percent to $29.1 million; men’s down 13.7 percent to $20.2 million; home was up 16 percent to $11.2 million, and entertainment up 21.5 percent to $30.5 million.

John Haugh, chief executive officer, said, “Performance across the brands was mixed, but with our balanced portfolio of brands and the company’s attractive margins, we were able to achieve stable revenue, increased profits and healthy free cash flow.”

The company is expected to disclose more information about its going-forward strategy at its Investor Day on Nov. 15.

At Friday’s annual shareholders’ meeting, Haugh told attendees that the company has been “too passive in brand management” and that the company is now an active brand manager. That also means that Iconix is more willing to divest non-core brands in its portfolio.

Iconix said it ended the quarter with $239.9 million of total cash, including $117.8 million of restricted cash, and $1.35 billion face value of debt. The free cash flow of $24.8 million is below last year’s $40 million, due to the timing of certain royalty payments, which have since been collected in the fourth quarter, the company said.

Iconix said it has received a letter from the staff of the U.S. Securities and Exchange Commission, division of corporate finance, formally noting that the staff has completed its review of the firm’s 10-K forms for the years ended Dec. 31, 2013 through 2015. The comment letter process was in connection with queries to certain accounting issues. A separate probe by the SEC enforcement division remains outstanding.

The company said it expects full-year 2016 revenue to be between $3 million to $5 million below its previous estimate, which has been as the low-end of its $370 million to $390 million guidance. The update reflects delayed timing for some new men’s programs and macro conditions in Europe. Diluted EPS on a GAAP basis is expected to be 4 cents below prior guidance range of 93 cents to $1.08, mostly due to professional fees in connection with the SEC investigation. The company also said it is maintaining free cash flow forecasts of $169 million to $184 million.

Investors sent shares of Iconix down 11.9 percent to $7.05 at the start of Tuesday’s trading session in reaction to the lowered guidance. At the end of the day’s trading session, the shares had rebounded, closing down 0.1 percent to $7.99 in Nasdaq trading.

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