PVH Corp: FX Headwinds And Volatility Could Lead To Weak Results

Shares of PVH Corp PVH were slightly up on Monday as the company prepares to announce its Q1 2016 financial results after the market closes.

According to Estimize, experts and the crowd both anticipate a small year-over-year decline in earnings and revenue. The former expect consensus earning of $1.38 per share on revenue of $1.859 billion, while the latter project earnings of $1.42 per share on revenue of $1.86 billion.

These estimates compare to earnings of $1.47 per share and revenue of $1.964 billion reported in the same quarter last year, and earnings of $1.76 per share on revenue of $2.069 billion registered last quarter.

It should be noted from the chart above that PVH has a history of either meeting or marginally beating estimates.

It is also interesting to take a look at how sentiment has evolved over time. Both the Street and the crowd have been becoming increasingly bearish on the results as the report date got closer.

What Analysts Think

In a recent report, Deutsche Bank named PVH among its top footwear and apparel stock picks. Meanwhile, analysts at Morgan Stanley reiterated an Equal-Weight rating on the stock and lowered their price target from $120.00 to $115.00.

Regarding the upcoming results, analysts at Zacks warn about a few factors that could impact on then. Most importantly, “prevalent foreign currency headwinds as well as a volatile global macroeconomic environment, particularly in Russia.”