Deckers Earnings: What's Expected?

Deckers Outdoor Corp DECK reports Q4 earnings Thursday following the market close.

The Estimize consensus expected EPS of $0.03 on revenue of $322.87 million while the Wall Street consensus anticipated EPS of -$0.01 on revenue of $320.37 million.

Wunderlich analyst Danielle McCoy maintained a Buy rating on the stock with an $89 price target.

McCoy expected EPS of -$0.03 an recently stated that despite “FX pressure witnessed by all companies with meaningful international exposure,” the firm continued to believe Deckers remained “focused on diversifying the overall branded portfolio, optimizing operating and planning systems, and leveraging omni-channel investments as it tailors its shopping experience to the new demands and shopping behaviors of the consumer.”

McCoy also believed the stock had an attractive risk-to-reward ratio with it trading roughly 25 percent below its 52 week high.

Canaccord Genuity analyst Camilo Lyon reiterated a Buy rating Thursday with an $84 price target.

Lyon modeled “breakeven EPS (in line with consensus) on sales growth of 8% vs. consensus of 9%” and despite “expectations for challenging trends in key tourism markets coupled with continued FX pressures,” Lyon believed “the extended winter weather, particularly in February, helped retailers clear through carryover UGG inventory from the holiday period, thus setting the stage for positive fall '15 order growth and backlogs.”

Lyon echoed McCoy's comments about favorable risk/reward and added that "the company's brands remain strong and the steps to diversify the assortment coupled with enhanced marketing around classics should pay dividends in fall '15."

Susquehanna analyst Christopher Svezia maintained a Positive rating and $83 price target.

Svezia looked “for DECK to end the year with a breakeven 4Q or in-line with consensus and management guidance. Currencies have stabilized to an ~200 bps top-line headwind, but since the last update recent read-throughs (M and RL) suggest that tourist spending hasn’t improved and in some cases, even worsened.”

Approximately “10% sales growth (UGG +2%),” was expected and Svezia would not “look for improvements in same store sales from what we saw in 3Q (-HSD),” however,  the firm would look “for e-commerce to continue being strong (20%+ growth).”

Heading into its earnings release, Deckers Outdoor Corp traded at $72.23, up 0.92 percent.