Deckers Outdoor Earnings Preview

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Investors are on the edge of their collective seats, hoping that Deckers Outdoor (NAS: DECK) will top analyst expectations for the fifth consecutive quarter. The company will unveil its latest earnings Thursday. Deckers Outdoor is a designer, producer, marketer, and brand manager of innovative, high-quality footwear and accessories.

What analysts say:

  • Buy, sell, or hold?: Analysts strongly back Deckers Outdoor, with 11 of 12 rating it a buy and the remainder rating it a hold. Analysts like Deckers Outdoor better than competitor Wolverine World Wide overall. Analysts still rate the stock a moderate buy, but they are a bit more wary about it compared with three months ago.
  • Revenue Forecasts: On average, analysts predict $387 million in revenue this quarter. That would represent a rise of 39.3% from the year-ago quarter.
  • Wall Street Earnings Expectations: The average analyst estimate is earnings of $1.34 per share. Estimates range from $1.28 to $1.41.

What our community says:
CAPS All-Stars are solidly behind the stock with 88.9% assigning it an "outperform" rating. The community at large agrees with the All-Stars with 84.5% giving it a rating of "outperform." Fools have embraced Deckers Outdoor and haven't been shy with their opinions lately, logging 307 posts in the past 30 days. Despite the majority sentiment in favor of Deckers Outdoor, the stock has a middling CAPS rating of three out of five stars.

Management:

Now let's look at how efficient management is at running the business. Traditionally, margins represent the efficiency with which companies capture portions of sales dollars. The following table shows gross, operating, and net margins over the past four quarters.

Quarter

Q2

Q1

Q4

Q3

Gross Margin

42.7%

50.0%

54.2%

47.1%

Operating Margin

(7.0%)

13.8%

32.7%

23.9%

Net Margin

(4.8%)

9.4%

20.7%

15.2%

One final thing: If you want to keep tabs on Deckers Outdoor movements, and for more analysis on the company, make sure you add it to your watchlist.

Motley Fool newsletter services have recommended buying shares of Deckers Outdoor.Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

At the time this article was published

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