Boston, MA 03/03/2014 (wallstreetpr) – Deckers Outdoor Corp (NASDAQ:DECK) had its shares going down more than 12 percent to $74.35 in the last session. That happened even after the company exceeded expectation in the most recent quarter. So then, we can get to the bottom of the matter to unearth the reason that led to that stock price downfall to touch a four-month low. But just before getting into the details, there is something worth mentioning at this juncture.
Deckers Outdoor Corp (NASDAQ:DECK) announced a change in its fiscal year that will now end March 31. Previously the company had its fiscal year ending December 31. Thus the announced fiscal year change will take effect March 31, 2014 when the company is expected to issue special results for the transition period.
Weak guidance
After posting beating results, Deckers Outdoor Corp (NASDAQ:DECK) did not follow it all through to guidance. Instead the company declared that it expected revenue in the first quarter to come in at $279 million, but that will be 4.7 percent below what analysts estimate. For the full year 2014, the company is looking for revenue in the range of $9.6 to $1.71 billion. Analysts are modeling full year revenue around $1.51 billion.
As for earnings, the management is training its eyes on a loss of 16 cents per share diluted in the first quarter. Yet analysts expect profit of 10 cents for the period. In the full year, the management is looking for $4.51 per share diluted, a figure that is below Wall Street estimates by about $0.07.
The concern and perhaps worry about the just declared guidance is heighted by the fact that Deckers Outdoor Corp (NASDAQ:DECK) is known to set conservative guidance that it easily beats.
The latest reported quarter
Deckers Outdoor Corp (NASDAQ:DECK) reported revenue of $736 million, exceeding the year ago revenue of $617.3 million by more than 19 percent. The revenue figure in the latest quarter also flew past the target of analysts at $711 million. Earnings per share in the quarter was $4.04, exceed the EPS modeled by analyst by 6.6 percent. With the latest earnings beat, it marked the seventh consecutive quarter of earnings estimates beat.
