DECK Stock Crumbles After Disappointing Guidance

Sales and profits climbed strongly last quarter

   

DECK Stock Crumbles After Disappointing Guidance

deckers outdoor 300x95 DECK Stock Crumbles After Disappointing GuidanceOn Thursday, footwear-maker Deckers Outdoor Corp. (DECK) posted improved fourth-quarter results, but offered a current-quarter outlook that badly missed analysts’ forecasts. DECK stock plunged more than 14% in Friday morning trading.

DECK stock dropped after the company said it anticipates a loss of around 16 cents per DECK share in the first quarter. That surprised analysts who had estimated a profit of 9 cent per share for DECK. The company said that revenue during the first quarter would grow about 6%, which was half the 12% increase that analysts had projected, the Wall Street Journal noted.

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For the full year, DECK estimated an 8% gain in annual earnings. That fell short of the 12% rise that Wall Street was looking for. DECK expects sales to climb 10% during the year. That was better than the 8.7% increase analysts have estimated.

In the fourth-quarter, DECK posted earnings of $140.0 million, compared to $98.1 million in the year-ago period. DECK reported net sales of $736 million, up 19% over the prior-year quarter.

On Thursday, DECK stock closed at $84.67 per share. DECK stock has more than doubled in price over the past twelve months.


Article printed from InvestorPlace Media, http://investorplace.com/2014/02/deck-stock-crumbles-disappointing-guidance/.

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