by Christopher Freeburn | February 28, 2014 9:54 am
On 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.
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.
Source URL: http://investorplace.com/2014/02/deck-stock-crumbles-disappointing-guidance/
Short URL: http://invstplc.com/1ob4Kfl
Copyright ©2015 InvestorPlace Media, LLC. All rights reserved. 700 Indian Springs Drive, Lancaster, PA 17601.