Shares of Iconix Brand Group Inc. rose nearly 8 percent Wednesday after the brand management firm posted double-digit gains in its fourth-quarter and full-year profits and reaffirmed its 2011 earnings guidance.
For the three months ended Dec. 31, net income rose 12.2 percent to $22.1 million, or 30 cents a diluted share, from $19.7 million, or 27 cents, in the year-ago quarter. Earnings include a one-time gain related to the firm’s Unzipped litigation. Earnings matched the analysts’ consensus estimate carried by Yahoo Finance.
Revenues, all derived from licensing, gained 33.7 percent to $88 million from $65.8 million.
For the year, income jumped 31.6 percent to $98.8 million, or $1.32 a diluted share, from $75.1 million, or $1.10, in 2009. Revenues leaped 43.3 percent to $332.6 million from $232.1 million.
Neil Cole, chairman and chief executive officer, said, “Our brands continue to gain market share as we build lifestyle businesses and optimize distribution. We also expanded our platform into new categories and geographies in 2010 through our Peanuts acquisition.”
Growth for the firm will be through current partnerships, international expansion and new acquisitions, noted Cole.
Iconix stuck with its full-year revenue guidance for the new year of $340 million to $350 million and earnings projection of between $1.40 and $1.45 a diluted share.
Shares of Iconix rose $1.53, or 7.8 percent, to $21.27 in over-the-counter trading Wednesday.
Eric Beder, analyst at Brean Murray, Carret & Co., on Wednesday raised the target price of Iconix stock to $27.
“We believe the company’s licensing-driven business model, which is not affected by costing pressures and should benefit from inflation, is one of the strongest for the current difficult-to-forecast period for consumer stocks and offers a haven of reliable and cash-rich earnings,” Beder said.