Fossil (FOSL) PT, Estimates Cut at Mizuho Following More Weak Results
- Wall Street again marks new highs in post-election run
- Broadcom Ltd. (AVGO) Tops Q4 EPS by 11c
- Restoration Hardware (RH) Tops Q3 EPS by 4c; Guides Well Below the Street
- Unusual 11 Mid-Day Movers 12/8: (COOL) (TLRD) (DRAM) Higher; (SHIP) (OHRP) (MLSS) Lower
- Third-Party Said Interested in PrivateBancorp (PVTB) as CIBC (CM) Deal is Delayed
Get the Pulse of the Market with StreetInsider.com's Pulse Picks. Get your Free Trial here.
Mizuho Securities analyst Betty Chen cut estimates and lowered her price target on Fossil (NASDAQ: FOSL) to $25.00 (from $29.00) following weak results and outlook. The firm maintained a Neutral rating.
Chen commented, "We are lowering our estimates and PT to $25 (from $29) on a lower guidance range given weak traditional watch demand and softness in jewelry/leather goods. While we acknowledge FOSL's success in integrating Misfit and launching 100+ wearable SKUs across 8 brands, the growing wearable business may be laden with risk from production/supply chain, user adoption, and lower gross margin. We also question the timing of profit improvement initiatives that require heavy, upfront cash charges. With uncertainty related to wearables, FOSL may continue to trade at a discounted ~12x multiple."
The firm's Our 4Q EPS estimate declines to $1.30 from $1.40 reflecting 0% global retail comps and EBIT margin of 8.5%, relative to guidance for $1.07-1.57. They are also cutting FY16 and FY17 EPS estimates to $1.90 and $2.05 from $2.00 and $2.40, respectively.
Shares of Fossil closed at $24.71 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- UPDATE: Stifel Downgrades Timken (TKR) to Hold
- FBR Capital Raises Price Target on TEGNA (TGNA) Following Investor Conference
- UBS Raises Price Target on Lowe's Cos. (LOW) Following Analyst Meeting
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT Change
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!