Birkenstock Shares Rise Ahead Of Q4 Earnings: Retail’s Extremely Bearish
By Stocktwits Inc | First Published Dec 18, 2024, 12:55 PM ISTThe company missed EPS estimates thrice out of the last four earnings quarters; it missed revenue estimates only once in the same period.
Birkenstock ($BIRK) shares have been up 2.66% over the past week ahead of the footwear maker’s fourth-quarter earnings, but retail sentiment remains extremely bearish.
The company’s stock rose 0.98% in the after-hours trading session on Tuesday ahead of its Q4 earnings release.
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Wall Street expects the London-based company to post $0.27 in earnings per share based on estimated revenues of $461.26 million.
The company missed EPS estimates thrice out of the last four earnings quarters, missing revenue estimates only once in the same period.
Its third-quarter EPS stood at $0.54, below the expected consensus average of $0.57. Sales came in at $625.49 million, compared with $628.88 million average estimated by analysts.
“Our Q3 results demonstrate our ability to meet consumer demand and align with shopping patterns while maintaining our disciplined engineered distribution approach, which remains our guiding principle,” Oliver Reichert, CEO of Birkenstock, said earlier at the company’s last earnings release. “We remain confident in our ability to deliver on our medium to long-term objectives for mid-to-high teens revenue growth, gross profit margin of 60% and Adjusted EBITDA margin of over 30%.”
Retail sentiment on Stocktwits turned ‘extremely bearish’ from ‘extremely bullish’ a week ago. While message volume remains in the ‘extremely high.’ zone.
In the previous quarter, the company saw strong double-digit revenue growth across all segments, including revenue growth of 15% in the Americas, 19% in Europe, and 41% in APMA on a constant currency basis.
Despite the overall bearish mood, some Stocktwits users were bullish, with one user expecting a target of $60.
Recently, UBS lowered its price target to $83 from $85 with a Buy rating. The firm noted Birkenstock's “strong” fundamentals, expecting the company to deliver a small Q4 sales beat and FY24 sales growth guidance that is in-line to slightly better than market expectations, The Fly.com reported citing the analyst.
Piper Sandler also recently assumed coverage of Birkenstock with an Overweight rating and $65 price target.
HSBC analyst Erwan Rambourg reportedly upgraded its rating to ‘Buy’ from ‘Hold’ and kept a price target of $60, raised from $58, according to The Fly.com. According to the HSBC analyst, concerns over the company's recent direct-to-consumer slowdown are overblown.
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