Oxford Industries (OXM) posted quarterly earnings of $3.50 per share, beating Zacks consensus estimate of $2.78 per share. That compares to earnings of $1.89 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents a profit surprise of 25.90%. A quarter ago, this owner of clothing lines Tommy Bahama, Lilly Pulitzer and Southern Tide was expected to post earnings of $1.36 per share when he was actually producing earnings of $1.68 $, offering a surprise of 23.53%.
In the past four quarters, the company has exceeded consensus EPS estimates four times.
Oxford Industries, part of the Zacks Textile – Apparel industry, reported revenue of $352.58 million for the quarter ended April 2022, beating Zacks’ consensus estimate of 7.16%. That compares to revenues of $265.76 million a year ago. The company has exceeded consensus revenue estimates four times in the past four quarters.
The sustainability of the immediate stock price movement based on recently released numbers and future earnings forecasts will primarily depend on management’s comments on the earnings call.
Oxford Industries shares have lost about 9.2% year-to-date against a -12.7% drop for the S&P 500.
What’s next for Oxford Industries?
With Oxford Industries outperforming the market so far this year, the question on investors’ minds is: what’s next for the stock?
There is no easy answer to this key question, but one reliable measure that can help investors answer it is the company’s earnings outlook. This includes not only current consensus earnings expectations for the upcoming quarter(s), but also how those expectations have changed recently.
Empirical research shows a strong correlation between short-term stock movements and trends in earnings estimate revisions. Investors can track these revisions on their own or rely on a proven scoring tool like Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Before this publication of the results, the trend of the revisions of the estimates for Oxford Industries: mixed. While the magnitude and direction of estimate revisions may change following the release of the company’s earnings report, the current situation translates into a No. 3 (hold) Zacks ranking for the stock. Thus, the shares should move in line with the market in the near future. You can see the full list of today’s Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how the estimates for the next few quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $3.39 on $346.97 million in revenue for the upcoming quarter and $9.04 on $1.25 billion in revenue for the current fiscal year.
Investors should be aware that the outlook for the sector can also have a significant impact on stock performance. In terms of Zacks industry rankings, Textile – Apparel is currently in the bottom 25% of over 250 Zacks industries. Our research shows that the top 50% of industries ranked by Zacks outperform the bottom 50% by a factor of more than 2 to 1.
Vince Holding Corp. (VNCE), another stock in the same sector, has not yet released its results for the quarter ended April 2022. Results are expected to be released on June 9.
This company is expected to post a quarterly loss of $0.67 per share in its next report, representing a year-over-year change of +31.6%. The consensus EPS estimate for the quarter remained unchanged for the past 30 days.
Revenues from Vince Holding Corp. are expected to be $77.2 million, up 34.2% from the prior year quarter.
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