Deckers Beats Earnings Expectations with Strong Q3 Performance

Solid Earnings Report Surpasses Estimates

Deckers (DECK) reported quarterly earnings of $1.59 per share, exceeding the Zacks Consensus Estimate of $1.22 per share. This is an improvement over the earnings of $1.14 per share from a year ago, with these numbers adjusted for non-recurring items.

This report showcases an earnings surprise of 30.33%. In the previous quarter, analysts anticipated earnings of $0.60 per share, while Deckers achieved $0.75, leading to a surprise of 25%.

Over the last four quarters, the company has consistently exceeded consensus EPS estimates.

Deckers operates in the Zacks Retail – Apparel and Shoes industry and reported revenues of $1.31 billion for the quarter ending September 2024. This figure topped the Zacks Consensus Estimate by 9.58% and reflects a significant rise from last year’s revenues of $1.09 billion. The company has also outperformed in terms of revenue estimates for four consecutive quarters.

Future stock price movements will heavily depend on management’s insights during the upcoming earnings call.

Since the start of the year, Deckers shares have gained approximately 35.5%, outpacing the S&P 500, which has increased by 21.5%.

Future Prospects for Deckers

With Deckers performing well this year, investors are keen to know what lies ahead for the stock.

While the answer isn’t straightforward, a look at the company’s earnings outlook can provide some guidance. This includes current consensus earnings expectations for upcoming quarters, as well as any changes in these forecasts.

Research shows a significant correlation between stock movements and earnings estimate revisions. Investors can monitor these changes independently or leverage the Zacks Rank system, which has a strong record in utilizing earnings estimate revisions.

Currently, the estimate revisions trend for Deckers is mixed. Following the recent earnings report, analysts may adjust their forecasts. The stock currently holds a Zacks Rank of #3 (Hold), indicating expectations of market-average performance in the near term. For a complete list of today’s Zacks #1 Rank (Strong Buy) stocks, click here.

It will be intriguing to observe how estimates for future quarters and the current fiscal year evolve. Presently, the consensus EPS estimate stands at $2.53 on $1.71 billion in revenues for the upcoming quarter, and $5.30 on $4.79 billion in revenues for the current fiscal year.

Investors should consider that the overall industry outlook can significantly influence stock performance. Presently, the Retail – Apparel and Shoes sector ranks in the top 17% of over 250 Zacks industries. Studies show that the top half of Zacks-ranked industries tends to outperform the bottom half by more than 2 to 1.

Another competitor in the sector, Lulu’s Fashion Lounge Holdings, Inc. (LVLU), is yet to announce its results for the quarter ending September 2024. Those results are expected on November 13.

Analysts project a quarterly loss of $0.07 per share for Lulu’s, reflecting a year-over-year change of +30%. The consensus EPS estimate for this quarter has remained stable over the past month.

Lulu’s is expected to generate revenues of $77 million, which would be a decline of 7.4% compared to the previous year.

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The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Nasdaq, Inc.