KORS Stock: Michael Kors Up Ahead of Earnings

Michael Kors Store

KORS stock traded as high as $42.93 Tuesday, before ending the day up 2.23% at $42.72 on heavy trading volume. The London-based apparel and accessories company is set to announce fourth-quarter fiscal 2016 results today before the opening bell.

Expectations for the Quarter

Wall Street analysts expect the high-end fashion retailer to report earnings per share of $0.97 and revenue of $1.15 billion. That would be $0.62 lower the $1.59 per share posted last quarter, and $0.07 higher the $0.90 posted in the Q415. Revenue is projected to be $50 million higher than the $1.1 billion posted in the same period a year earlier. Meanwhile, EarningsWhisper.com reports a whisper number of $1.05 per share.

As a quick reminder, Michael Kors Holdings Limited (KORS) reported 3Q16 EPS of $1.59, $0.13 better than the Street’s consensus estimate of $1.46. Revenues increased 3.08% year-over-year to $1.34 billion versus the $1.36 billion consensus. KORS has a history of beating the Street estimates, surpassing EPS expectations 81% of the time, while posting a positive bottom-line surprise of at least 9% in each of the three prior quarters.

Trading Metrics

Michael Kors Holdings Ltd. shares are priced at 9.85x this year’s forecasted earnings, compared to the industry’s 6.48x earnings multiple. The company’s current year and next year EPS growth estimates stand at 3.30% and 1.80%, compared to the industry growth rates of 7.20% and 18.80%, respectively. KORS has a t-12 price-to-sales ratio of 1.63. EPS for the same period registers at $4.34.

KORS shares have declined 17.31% in the last 4 weeks and 25.43% in the past three months. Over the past 5 trading sessions the stock has gained 2.91%.

The $7.66 billion market cap company has a median Street price target of $56.00 with a high target of $75.00.

Michael Kors Holdings Ltd. is down 10.52% year-over-year, compared with a 0.81% loss in the S&P 500.

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