Deckers Outdoor Earnings Preview

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Watch Deckers Outdoor's (NAS: DECK) earnings report to see if it can beat analyst expectations for the fifth consecutive quarter. The company will unveil its latest earnings on Thursday, April 26. Deckers Outdoor Corporation 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 12 of 14 rating it a buy and the remainder rating it a hold. Analysts like Deckers Outdoor better than competitor Crocs overall. Analysts still rate the stock a moderate buy, but they are a bit more wary about it compared to three months ago.
  • Revenue Forecasts: On average, analysts predict $247.1 million in revenue this quarter. That would represent a rise of 20.6% from the year-ago quarter.
  • Wall Street Earnings Expectations: The average analyst estimate is earnings of $0.25 per share. Estimates range from $0.22 to $0.28.

What our community says:
CAPS All-Stars are strongly supporting the stock, with 85.5% assigning it an "outperform" rating. The greater community concurs with the All-Stars, as 84.9% give it a rating of "outperform." Though Fools have had relatively little to say about Deckers Outdoor on the message boards this month, the general tone of their four posts has been bullish. Despite the majority sentiment in favor of Deckers Outdoor, the stock has a middling CAPS rating of three out of five stars.


Management:
The company's gross margin shrank by 3.3 percentage points in the last quarter. Revenue rose 40.4% while cost of sales rose 50.5% to $296.1 million from a year earlier.

Now, a look at how efficient management has been at running the business. Margins illustrate how efficiently a company captures portions of sales dollars. For four quarters in a row, the company has seen decreases in net margins year-over-year. Net margins reflect what percentage of revenue becomes profit. Here are Deckers Outdoor's reported margins for the last four quarters:

Quarter

Q4

Q3

Q2

Q1

Gross Margin

51.0%

49.0%

42.7%

50.0%

Operating Margin

29.3%

21.9%

(7.0%)

13.8%

Net Margin

20.7%

15.1%

(4.8%)

9.4%

For all our Deckers Outdoor-specific analysis, including earnings and beyond, add Deckers Outdoor to My Watchlist.

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