The Buckle, Inc. Just Reported, And Analysts Assigned A US$14.00 Price Target
One of the biggest stories of last week was how The Buckle, Inc. (NYSE:BKE) shares plunged 24% in the week since its latest yearly results, closing yesterday at US$14.45. Buckle reported US$900m in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$2.14 beat expectations, being 4.7% higher than what analysts expected. This is an important time for investors, as they can track a company's performance in its report, look at what top analysts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Check out our latest analysis for Buckle
After the latest results, the consensus from Buckle's only analyst is for revenues of US$868.3m in 2021, which would reflect a perceptible 3.5% decline in sales compared to the last year of performance. Statutory earnings per share are expected to sink 15% to US$1.83 in the same period. Yet prior to the latest earnings, analysts had been forecasting revenues of US$897.1m and earnings per share (EPS) of US$2.04 in 2021. It's pretty clear that analyst sentiment has fallen after the latest results, leading to lower revenue forecasts and a minor downgrade to earnings per share estimates.
It'll come as no surprise then, to learn that analysts have cut their price target 33% to US$14.00.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. One more thing stood out to us about these estimates, and it's that Buckle's decline is expected to slow down, with revenues forecast to fall 3.5% next year, improving on a historical decline of 6.5% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the market are forecast to see their revenue decline 5.3% per year. So while it's not great to see that analysts are expecting a decline, at least Buckle is forecast to shrink at a slower rate than the wider market.
The Bottom Line
The biggest concern with the new estimates is that analysts have reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Buckle. On the negative side, they also downgraded their revenue estimates, and forecasts imply revenues will perform worse than the wider market. The consensus price target fell measurably, with analysts seemingly not reassured by the latest results, leading to a lower estimate of Buckle's future valuation.
With that in mind, we wouldn't be too quick to come to a conclusion on Buckle. Long-term earnings power is much more important than next year's profits. We have analyst estimates for Buckle going out as far as 2023, and you can see them free on our platform here.
We also provide an overview of the Buckle Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
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