Outerwear manufacturer Columbia Sportswear (NASDAQ: COLM) will be reporting earnings this Thursday after market close. Here’s what to expect.
Columbia Sportswear beat analysts’ revenue expectations last quarter, reporting revenues of $1.07 billion, down 2.4% year on year. It was a very strong quarter for the company, with a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
Is Columbia Sportswear a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Columbia Sportswear’s revenue to decline 2.5% year on year, a reversal from the 1.1% increase it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Columbia Sportswear rarely misses Wall Street’s revenue estimates.
Looking at Columbia Sportswear’s peers in the consumer discretionary segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Levi's delivered year-on-year revenue growth of 14.1%, beating analysts’ expectations by 5.6%, and Monarch reported revenues up 8.9%, topping estimates by 5.2%. Levi's traded up 10.7% following the results while Monarch was also up 15.9%.
Read our full analysis of Levi’s results here and Monarch’s results here.
There has been positive sentiment among investors in the consumer discretionary segment, with share prices up 12.5% on average over the last month. Columbia Sportswear is up 15.5% during the same time and is heading into earnings with an average analyst price target of $65 (compared to the current share price of $61.08).
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