Abercrombie & Fitch Co. (NYSE:ANF) is scheduled to report Q3 earnings results on November 26, 2019, at 8:30 AM EST. You can find more information about the conference call here.
The company is expected to report earnings of $0.24/share on revenue of $869.9 million. The consensus earnings per share (EPS) of $0.24/share is based on a poll of 14 analysts and represents a decline of -27.7% over the same quarter last year when the company reported earnings of $0.33/share.
The revenue forecast of $869.9 million based on a poll of 13 analysts implies a year-over-year (YoY) growth of 1.0%. Last year the company reported $861.2 million in revenue for the quarter.
| Metric | Expected | Prior Year | YoY Change |
|---|---|---|---|
| Revenue | $869.89 | $861.19 | 1.0% |
| EPS | $0.24 | $0.33 | -27.7% |
Earnings Call Trends
Management has been great at managing analyst expectations historically. The company has a perfect record over the last 8 tracked quarters of exceeding earnings guidance. What are your expectations from Abercrombie & Fitch for earnings this quarter? Let us know in the comments!
| Quarter | Expected | Reported | Surprise | Result |
|---|---|---|---|---|
| Q2, 2020 | -$0.52 | -$0.48 | NM | Beat |
| Q1, 2020 | -$0.43 | -$0.29 | NM | Beat |
| Q4, 2019 | $1.14 | $1.35 | 18.9% | Beat |
| Q3, 2019 | $0.21 | $0.33 | 57.1% | Beat |
| Q2, 2019 | -$0.05 | $0.06 | NM | Beat |
| Q1, 2019 | -$0.80 | -$0.56 | NM | Beat |
| Q4, 2018 | $1.11 | $1.38 | 24.3% | Beat |
| Q3, 2018 | $0.20 | $0.30 | 50.0% | Beat |
One question we always consider here at the Bankers’ Tribune is how important are earnings reports to Abercrombie & Fitch’s stock price performance? It’s more important for some companies than for others.
In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report. After the last earnings report for the period ending August 3, 2019, the stock price reacted by falling by -14.1%.
| Report Date | Price Day Prior | Price Next Day | Change % | Result |
|---|---|---|---|---|
| 2019-08-29 | $17.02 | $14.62 | -14.1% | Decline |
| 2019-05-29 | $25.01 | $17.50 | -30.0% | Decline |
| 2019-03-06 | $21.35 | $25.76 | 20.7% | Increase |
| 2018-11-29 | $17.12 | $20.91 | 22.1% | Increase |
Fundamentals And Technical Analysis
Abercrombie & Fitch is currently trading at $16.23/share, up 1.9% for the day. The company is trading at approximately 53.0% of its 52-week high of $30.63/share. The company’s stock price is up 11.0% since the last earnings report and down -5.0% over the previous week. The company’s 14 Day Relative Price Index (RSI) of 44.30 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.
The current share price implies a price-to-earnings (P/E) multiple of 13.3x and a forward P/E multiple of 20.4x. Abercrombie & Fitch’s current share price also implies a price-to-book (P/B) multiple of 1.0x. The following table summarizes some other key fundamental ratios:
| Metric | Value |
|---|---|
| Last Fiscal Period | FY2020.Q2 |
| Period End Date | August 3, 2019 |
| Stock Price (Current) | $16.23 |
| P/E Ratio | 13.3x |
| P/E Ratio (Fwd) | 20.4x |
| PEG Ratio | 0.3 |
| Total Debt to Capital (%) | 63.4% |
| Levered Free Cash Flow | $73.85 million |
| Enterprise Value / EBITDA | 7.3x |
Source: Finbox
Company Profile: Abercrombie & Fitch Co.
Abercrombie & Fitch Co. is a small-cap stock with a market capitalization of $1.001 billion and a total enterprise value of $2.268 billion. The company operates in the Consumer Discretionary sector and Specialty Retail industry.
Abercrombie & Fitch Co., through its subsidiaries, operates as a specialty retailer. The company operates in two segments, Hollister and Abercrombie. It offers an assortment of apparel, personal care products, intimates, and accessories for men, women, and children under the Hollister, Abercrombie & Fitch, abercrombie kids, and Gilly Hicks brands. As of June 14, 2019, it operated approximately 850 stores in North America, Europe, Asia, and the Middle East. The company sells products through its stores and direct-to-consumer channels; various third-party wholesale, franchise, and licensing arrangements; and e-commerce platforms.
Abercrombie & Fitch Co. was founded in 1892 and is headquartered in New Albany, Ohio.
