Wunderlich and Stifel Preview Deckers Outdoor Q3 Earnings

Wunderlich and Stifel offered earnings previews for Deckers Outdoor Corp DECK Tuesday and both predicted strong results based on channel checks.

The company will report fiscal Q3 earnings on January 29 and the Street expects revenues of $814.39 million and EPS of $4.52. For FY2015 the consensus for revenue is $1.83 billion with EPS of $4.77.

Wunderlich analyst Danielle McCoy raised FY2015 EPS estimates from $4.71 to $4.80 and noted that “channel checks are pointing to a solid 3Q performance and a business well positioned to make money in 4Q.”

McCoy reiterated a Buy rating with a $121 price target and has “become even more confident in Deckers in both the near and longer term.”

Stifel analyst Jim Duffy echoed McCoy’s view that channel checks indicated a strong Q3 and estimated revenue would come in at $814 million but modeled EPS below consensus at $4.46.

Looking ahead, Duffy thought “the market is currently discounting FY16 earnings power 5-10 percent below current consensus estimates for $5.59. Duffy saw this as a likely near-term catalyst for shares with “short-interest at approximately 20 percent of the float.”

Stifel maintained a Hold rating on the stock.

Over the past month, the stock has fallen over 12 percent. Heading into the earnings release, the stock has risen over 3 percent since Monday and recently traded at $80.85.