Stock Story -
Footwear and apparel conglomerate Deckers (NYSE:DECK) will be announcing earnings results tomorrow after market close. Here’s what investors should know.
Deckers beat analysts’ revenue expectations by 2.4% last quarter, reporting revenues of $825.3 million, up 22.1% year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ earnings and operating margin estimates.
Is Deckers a buy or sell going into earnings? Find out by reading the original article on StockStory, it’s free.
This quarter, analysts are expecting Deckers’s revenue to grow 10.1% year on year to $1.20 billion, slowing from the 24.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.23 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Deckers has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 7.1% on average.
Looking at Deckers’s peers in the consumer discretionary segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Nike’s revenues decreased 10.4% year on year, meeting analysts’ expectations, and Scholastic reported revenues up 3.8%, topping estimates by 1.6%. Nike (NYSE:NKE) traded down 6.8% following the results while Scholastic was up 6%.
Read the full analysis of Nike’s and Scholastic’s results on StockStory.
Investors in the consumer discretionary segment have had fairly steady hands going into earnings, with share prices down 1.1% on average over the last month. Deckers’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $177.96 (compared to the current share price of $154.94).