Thursday, February 23, 2012

Uggly After Hours Action on Deckers Despite Earnings Beat (NASDAQ: DECK)

Deckers Outdoor Corp. (NASDAQ: DECK): fell by 11.46% or $-10.33/share in after hours trading to $79.80 after the company announced its fiscal and Q4 earnings. In today's trading session, DECK traded higher by 1.90% or $1.68/share to $90.13. In the past year, the shares have traded as low as $72.78 and as high as $118.90. On average, 1679890 shares of DECK exchange hands on a given day and today's volume is recorded at 2084144.

The company reported fiscal 2011 sales increased by 37.6% to a record $1.377 billion. Fiscal 2011 diluted EPS increased 25.8% to a record $5.07. Sales of UGG branded merchandise was still strong showing a growth of 37.6% to a record of $1.202 billion. Notice that UGG sales represent nearly all of the company's sales.

Q4 sales increased by 40.4% to a record $603.9 million. The EPS for the quarter increased 40.1% to a record $3.18. Analysts expected the company to earn $3.14 per share for quarter ended Dec 2011. Estimates from Wall Street analysts ranged from as low as $3.04 per share to as high as $3.25 per share. For the same quarter last year, the company earned $2.27 per share. Revenues were expected to come in at $565.21M.

Despite the earnings beat, the stock got crushed in after-hours trading. Additionally, the company announced it would do a share buyback.

Deckers Outdoor Corporation (Deckers) is a designer, producer, marketer, and brand manager of footwear and accessories.

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