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Results: Oxford Industries, Inc. Beat Earnings Expectations And Analysts Now Have New Forecasts

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As you might know, Oxford Industries, Inc. (NYSE:OXM) recently reported its third-quarter numbers. Revenues were US$241m, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of US$0.10 were also better than expected, beating analyst predictions by 11%. 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. We've gathered the most recent statutory forecasts to see whether analysts have changed their earnings models, following these results.

Check out our latest analysis for Oxford Industries

NYSE:OXM Past and Future Earnings, December 16th 2019
NYSE:OXM Past and Future Earnings, December 16th 2019

Taking into account the latest results, the most recent consensus for Oxford Industries from five analysts is for revenues of US$1.17b in 2021, which is a satisfactory 4.0% increase on its sales over the past 12 months. Statutory earnings per share are expected to accumulate 10.0% to US$4.59. In the lead-up to this report, analysts had been modelling revenues of US$1.18b and earnings per share (EPS) of US$4.60 in 2021. So it's pretty clear that, although analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

There were no changes to revenue or earnings estimates or the price target of US$82.20, suggesting that the company has met expectations in its recent result. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Oxford Industries, with the most bullish analyst valuing it at US$87.00 and the most bearish at US$72.00 per share. Still, with such a tight range of estimates, it suggests analysts have a pretty good idea of what they think the company is worth.

Another way to assess these estimates is by comparing them to past performance, and seeing whether analysts are more or less bullish relative to other companies in the market. Next year brings more of the same, according to analysts, with revenue forecast to grow 4.0%, in line with its 4.3% annual growth over the past five years. Compare this with the wider market (in aggregate), which analyst estimates suggest will see revenues fall 7.0% next year. So although Oxford Industries is expected to maintain its revenue growth rate, it's forecast to grow slower than the wider market.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with analysts reconfirming that earnings per share are expected to continue performing in line with their prior expectations. Fortunately, analysts also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations - although our data does suggest that Oxford Industries's revenues are expected to perform worse than the wider market. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on Oxford Industries. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Oxford Industries analysts - going out to 2021, and you can see them free on our platform here.

We also provide an overview of the Oxford Industries 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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.