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This Fast-Growing Stock-Split Stock Just Trounced Estimates Again. Is It Too Late to Buy?
DECKDeckers(DECK) The Motley Fool·2024-10-28 22:17

Core Viewpoint - Deckers has demonstrated strong growth in its latest earnings report, with significant revenue increases and positive market reactions following its recent stock split [3][4][6]. Financial Performance - Total revenue increased by 20.1% to 1.31billion,surpassingestimatesof1.31 billion, surpassing estimates of 1.2 billion [4]. - Direct-to-consumer (DTC) revenue rose by 19.9% to 397.7million,whilewholesalerevenuegrewby20.2397.7 million, while wholesale revenue grew by 20.2% to 913.7 million [4]. - Hoka brand sales surged by 34.7% to 570.9million,andinternationalrevenueincreasedby33570.9 million, and international revenue increased by 33% to 457.4 million [5]. - Ugg brand revenue reached 689.9million,up13689.9 million, up 13% year-over-year [5]. - Gross margin improved by 250 basis points to 55.9%, contributing to a 36% increase in operating income to 305.1 million [6]. Earnings and Guidance - Earnings per share rose from 1.14to1.14 to 1.59, exceeding the consensus estimate of 1.24[7].Thecompanyraiseditsrevenueforecastto1.24 [7]. - The company raised its revenue forecast to 4.8 billion, indicating a 12% growth, which is below the consensus estimate of 4.82billion[7].Theearningsforecastwasadjustedtoarangeof4.82 billion [7]. - The earnings forecast was adjusted to a range of 5.15 to 5.25,comparedtoestimatesof5.25, compared to estimates of 5.35 [7][8]. Market Position and Outlook - Deckers' stock has increased over 500% in the last five years, with Hoka and Ugg as category leaders [10]. - The company trades at a price-to-earnings ratio of 32, with expectations of beating conservative guidance [10]. - The upcoming holiday season is crucial, with improving consumer sentiment and falling interest rates likely to boost spending [11].