Abercrombie & Fitch (ANF) got here out with quarterly earnings of $0.76 per share, beating the
Abercrombie & Fitch (ANF) got here out with quarterly earnings of $0.76 per share, beating the Zacks Consensus Estimate of a lack of $0.05 per share. This compares to earnings of $0.23 per share a yr in the past. These figures are adjusted for non-recurring gadgets.
This quarterly report represents an earnings shock of 1,620%. 1 / 4 in the past, it was anticipated that this teen clothes retailer would submit a lack of $0.89 per share when it really produced earnings of $0.23, delivering a shock of 125.84%.
During the last 4 quarters, the corporate has surpassed consensus EPS estimates thrice.
Abercrombie, which belongs to the Zacks Retail – Attire and Sneakers trade, posted revenues of $819.65 million for the quarter ended October 2020, surpassing the Zacks Consensus Estimate by 11.48%. This compares to year-ago revenues of $863.47 million. The corporate has topped consensus income estimates thrice during the last 4 quarters.
The sustainability of the inventory’s speedy worth motion primarily based on the recently-released numbers and future earnings expectations will largely rely on administration’s commentary on the earnings name.
Abercrombie shares have added about 31.2% for the reason that starting of the yr versus the S&P 500’s acquire of 10.7%.
What’s Subsequent for Abercrombie?
Whereas Abercrombie has outperformed the market to this point this yr, the query that involves traders’ minds is: what’s subsequent for the inventory?
There are not any simple solutions to this key query, however one dependable measure that may assist traders handle that is the corporate’s earnings outlook. Not solely does this embrace present consensus earnings expectations for the approaching quarter(s), but in addition how these expectations have modified these days.
Empirical analysis exhibits a powerful correlation between near-term inventory actions and traits in earnings estimate revisions. Traders can monitor such revisions by themselves or depend on a tried-and-tested score instrument just like the Zacks Rank, which has a powerful monitor file of harnessing the ability of earnings estimate revisions.
Forward of this earnings launch, the estimate revisions development for Abercrombie was combined. Whereas the magnitude and course of estimate revisions might change following the corporate’s just-released earnings report, the present standing interprets right into a Zacks Rank #3 (Maintain) for the inventory. So, the shares are anticipated to carry out in step with the market within the close to future. You’ll be able to see the whole checklist of in the present day’s Zacks #1 Rank (Robust Purchase) shares right here.
It will likely be attention-grabbing to see how estimates for the approaching quarters and present fiscal yr change within the days forward. The present consensus EPS estimate is $1.18 on $1.10 billion in revenues for the approaching quarter and -$1.93 on $3.01 billion in revenues for the present fiscal yr.
Traders needs to be aware of the truth that the outlook for the trade can have a fabric impression on the efficiency of the inventory as nicely. By way of the Zacks Trade Rank, Retail – Attire and Sneakers is at the moment within the high 27% of the 250 plus Zacks industries. Our analysis exhibits that the highest 50% of the Zacks-ranked industries outperform the underside 50% by an element of greater than 2 to 1.
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Abercrombie & Fitch Firm (ANF): Free Inventory Evaluation Report
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The views and opinions expressed herein are the views and opinions of the writer and don’t essentially replicate these of Nasdaq, Inc.