Deckers (DECK) closed at $105.83 in the latest trading session, marking a -4.85% move from the prior day. The stock's change was less than the S&P 500's daily loss of 0.5%. Elsewhere, the Dow lost 0.38%, while the tech-heavy Nasdaq lost 0.5%. The maker of Ugg footwear's shares have seen a decrease of 4.71% over the last month, not keeping up with the Retail-Wholesale sector's gain of 0.66% and the S&P 500's gain of 2.74%.The upcoming earnings release of Deckers will be of great interest to investors. In tha ...

Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings for Deckers despite higher revenues, with a focus on how actual results will compare to estimates impacting stock price [1][2]. Earnings Expectations - Deckers is expected to report quarterly earnings of $0.68 per share, reflecting a year-over-year decrease of 9.3%, while revenues are projected to be $899.21 million, an increase of 9% from the previous year [3]. - The consensus EPS estimate has been revised down by 0.15% over the last 30 days, indicating a reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model shows a positive Earnings ESP of +6.45% for Deckers, suggesting analysts have recently become more optimistic about the company's earnings prospects [12]. - However, Deckers currently holds a Zacks Rank of 4, complicating predictions of an earnings beat [12]. Historical Performance - In the last reported quarter, Deckers exceeded expectations by delivering earnings of $1.00 per share against an expected $0.57, resulting in a surprise of +75.44% [13]. - Over the past four quarters, Deckers has consistently beaten consensus EPS estimates [14]. Conclusion - While Deckers may not appear to be a strong candidate for an earnings beat, it is essential to consider other factors influencing stock performance ahead of the earnings release [17].

Company Performance - Deckers (DECK) closed at $110.91, reflecting a +1.55% change from the previous day, outperforming the S&P 500's daily gain of 0.09% [1] - Over the past month, Deckers' shares declined by 9.79%, underperforming the Retail-Wholesale sector's gain of 6.31% and the S&P 500's gain of 7.21% [1] Upcoming Earnings - Deckers is expected to report earnings of $0.67 per share, indicating a year-over-year decline of 10.67%, while revenue is projected to be $899.01 million, representing an 8.92% increase compared to the same quarter last year [2] - For the full year, earnings are projected at $6.12 per share and revenue at $5.36 billion, showing changes of -3.32% and +7.61% respectively from the previous year [3] Analyst Estimates and Valuation - The Zacks Consensus EPS estimate has decreased by 5.3% over the past month, and Deckers currently holds a Zacks Rank of 4 (Sell) [5] - Deckers has a Forward P/E ratio of 17.86, which is a premium compared to the industry's average Forward P/E of 17 [5] - The company has a PEG ratio of 6.57, significantly higher than the Retail - Apparel and Shoes industry's average PEG ratio of 1.94 [6] Industry Context - The Retail - Apparel and Shoes industry ranks in the bottom 30% of all industries, with a current Zacks Industry Rank of 173 [6] - The Zacks Industry Rank measures the strength of industry groups, indicating that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings for Deckers despite higher revenues, with a focus on how actual results compare to estimates impacting stock price [1][2]. Company Summary - Deckers is expected to report quarterly earnings of $0.56 per share, reflecting a year-over-year decrease of 32.5%, while revenues are projected to be $985.64 million, an increase of 2.7% from the previous year [3]. - The consensus EPS estimate has been revised down by 1.86% over the last 30 days, indicating a reassessment by analysts [4]. - The Most Accurate Estimate for Deckers is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +14.90%, although the stock carries a Zacks Rank of 4, complicating predictions of an earnings beat [10][11]. Earnings Surprise History - Deckers has a history of beating consensus EPS estimates, having done so in the last four quarters, with a notable surprise of +15.38% in the last reported quarter [12][13]. Industry Context - Urban Outfitters, another player in the Zacks Retail - Apparel and Shoes industry, is expected to post earnings of $0.81 per share, indicating a year-over-year increase of 17.4%, with revenues projected at $1.29 billion, up 7.1% from the previous year [17]. - Urban Outfitters has a positive Earnings ESP of 1.03% and a Zacks Rank of 3, suggesting a likely earnings beat, having consistently beaten consensus EPS estimates in the past four quarters [18].

Core Insights - Deckers (DECK) is positioned to potentially continue its earnings-beat streak, particularly in the upcoming report, as it has a history of exceeding earnings estimates [1] - The company has achieved an average surprise of 22.86% over the last two quarters, indicating strong performance [1] Earnings Performance - In the last reported quarter, Deckers posted earnings of $3 per share, surpassing the Zacks Consensus Estimate of $2.60 per share, resulting in a surprise of 15.38% [2] - For the previous quarter, the company exceeded expectations by reporting earnings of $1.59 per share against an estimate of $1.22 per share, delivering a surprise of 30.33% [2] Earnings Estimates and Predictions - Recent estimates for Deckers have been trending upward, with a positive Earnings ESP (Expected Surprise Prediction) indicating a strong likelihood of another earnings beat [5][8] - The current Earnings ESP for Deckers is +6.75%, suggesting that analysts have become more optimistic about the company's earnings prospects [8] Zacks Rank and Predictive Metrics - Deckers holds a Zacks Rank of 3 (Hold), which, when combined with a positive Earnings ESP, suggests a high probability of beating consensus estimates, with historical data showing nearly 70% success in such cases [6][8] - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions [7]

Core Viewpoint - Deckers (DECK) has experienced a stock return of -8.8% over the past month, underperforming the Zacks S&P 500 composite's -3.9% change and the Zacks Retail - Apparel and Shoes industry's -8.9% loss, raising questions about its near-term performance [1] Earnings Estimates Revisions - For the current quarter, Deckers is expected to post earnings of $0.55 per share, reflecting a decrease of -33.7% from the same quarter last year, with the Zacks Consensus Estimate changing by -2.4% over the last 30 days [4] - The consensus earnings estimate for the current fiscal year is $5.88, indicating a year-over-year increase of +21%, with a recent change of -1.2% [4] - For the next fiscal year, the consensus estimate is $6.52, suggesting an increase of +11% from the previous year, with a change of -1.2% over the past month [5] Revenue Growth Forecast - The consensus sales estimate for the current quarter is $983.39 million, indicating a year-over-year growth of +2.5% [9] - For the current fiscal year, the revenue estimate is $4.95 billion, reflecting a growth of +15.4%, while the next fiscal year's estimate of $5.42 billion indicates a change of +9.6% [9] Last Reported Results and Surprise History - Deckers reported revenues of $1.83 billion in the last quarter, representing a year-over-year increase of +17.1%, with an EPS of $3 compared to $2.52 a year ago [10] - The reported revenues exceeded the Zacks Consensus Estimate of $1.71 billion by +6.7%, and the EPS surprise was +15.38% [10] - The company has consistently beaten consensus EPS and revenue estimates in the trailing four quarters [11] Valuation - Deckers is graded C in the Zacks Value Style Score, indicating it is trading at par with its peers [15] - Valuation multiples such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF) are essential for determining whether the stock is fairly valued, overvalued, or undervalued [13][14] Bottom Line - The Zacks Rank 3 suggests that Deckers may perform in line with the broader market in the near term, despite the market buzz surrounding the company [16]