Wunderlich, Stifel Preview Deckers Outdoor Q3 Earnings

Wunderlich and Stifel offered earnings previews for Deckers Outdoor Corp (NYSE: 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 3 percent Monday, but recently traded at $81.00, down 0.42 percent.