Deckers Outdoor Corp Third Quarter Earnings Sneak Peek

Deckers Outdoor Corp (NASDAQ:DECK) will unveil its latest earnings on Thursday, October 25, 2012. Deckers Outdoor Corporation is a designer, producer, marketer, and brand manager of innovative, high-quality footwear and accessories.

Deckers Outdoor Corp Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of $1.03 per share, a decline of 35.2% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from $1.46. Between one and three months ago, the average estimate moved down. It also has dropped from $1.12 during the last month. Analysts are projecting profit to rise by 20.5% versus last year to $4.03.

Past Earnings Performance: The company topped estimates last quarter after missing forecasts the quarter prior. In the second quarter, it reported a loss of 53 cents per share against a mean estimate of net loss of 59 cents per share. In the first quarter, it missed forecasts by 5 cents.

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A Look Back: In the second quarter, the company’s loss widened to a loss of a $20.1 million (53 cents a share) from a loss of $7.3 million (19 cents) a year earlier, but beat analyst expectations. Revenue rose 13.1% to $174.4 million from $154.2 million.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 2.74 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands. The company regressed in this liquidity measure from 6.81 in the first quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased more than twofold to $249.7 million while assets rose 5.5% to $683.5 million.

Stock Price Performance: Between August 23, 2012 and October 19, 2012, the stock price had fallen $11.97 (-24.4%), from $49.05 to $37.08. The stock price saw one of its best stretches over the last year between May 17, 2012 and May 23, 2012, when shares rose for five straight days, increasing 8.5% (+$4.47) over that span. It saw one of its worst periods between September 14, 2012 and September 25, 2012 when shares fell for eight straight days, dropping 28.5% (-$13.93) over that span.

Key Stats:

With double-digit revenue growth the past four quarters, this earnings release is a chance to keep that positive trend going. The company has averaged year-over-year revenue growth of 30.7% over the last four quarters.

Analyst Ratings: With six analysts rating the stock a buy, one rating it a sell and four rating the stock a hold, there are indications of a bullish stance by analysts.

Wall St. Revenue Expectations: Analysts are projecting a rise of 0.2% in revenue from the year-earlier quarter to $415.1 million.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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