Michael Kors Holdings Ltd. (NYSE: KORS) reported its fiscal third-quarter financial results before the markets opened on Tuesday. This stock had been battered and bruised, and it disappointed on earnings numerous times. However, this time when the company beat earnings, the analysts who had cut their targets on the way down had to lift their targets up again.
The company had $1.59 in earnings per share (EPS) on $1.40 billion in revenue. That compared to Thomson Reuters consensus estimates of $1.46 in EPS on revenue of $1.36 billion. The same period from the previous year had EPS of $1.48 and $1.31 billion in revenue.
Retail net sales increased 11.1% to $766.2 million, driven primarily by e-commerce sales from the company’s digital flagships and 114 net new store openings since the end of the third quarter of fiscal 2015.
In terms of guidance, the company expects to have EPS in the range of $0.93 to $0.97 and revenues between $1.13 billion to $1.15 billion for the fiscal fourth quarter. The consensus estimates call for $1.00 in EPS on $1.16 billion in revenue.
A fair number of analysts jumped on Michael Kors following the release of the earnings report:
- Baird has a Neutral rating and raised its target price to $52 from $42.
- Wedbush has a Neutral rating and raised the target price to $52 from $39.
- Merrill Lynch has a Neutral rating and raised its target from $45 to $54.
- Canaccord Genuity has a Hold rating and raised its price target to $48 from $39.
- Deutsche Bank has a Buy rating and raised its target price to $56 from $50.
- Citigroup has a Neutral rating and raised its target price to $55 from $38.
- Goldman Sachs has a Neutral rating and raised its target price to $51 from $45.
- BMO has a Market Perform rating and raised the price target from $40 to $46.
- Citigroup upgraded it to Neutral from Sell.
- Credit Suisse has a Neutral rating and raised its price target from $56 to $57.
- Nomura has a Buy rating and raised the target price to $60 from $53.
- RBC has a Sector Perform rating and raised its target price to $52 from $48.
Shares of Michael Kors closed trading at $51.86 on Friday, with a consensus estimate of $56.04 and a 52-week trading range of $34.83 to $73.47.
Want to Retire Early? Start Here (Sponsor)
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Have questions about retirement or personal finance? Email us at [email protected]!
By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.
By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.