Clothing company Kontoor Brands (NYSE:KTB) will be reporting earnings tomorrow before the bell. Here’s what you need to know.
Kontoor Brands beat analysts’ revenue expectations by 2.3% last quarter, reporting revenues of $606.9 million, down 1.5% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ constant currency revenue estimates and a decent beat of analysts’ earnings estimates.
Is Kontoor Brands a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Kontoor Brands’s revenue to grow 1.4% year on year to $663.4 million, slowing from the 7.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.26 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Kontoor Brands has missed Wall Street’s revenue estimates three times over the last two years.
Looking at Kontoor Brands’s peers in the apparel, accessories and luxury goods segment, some have already reported their Q3 results, giving us a hint as to what we can expect. VF Corp’s revenues decreased 5.6% year on year, beating analysts’ expectations by 1.6%, and Carter's reported a revenue decline of 4.2%, in line with consensus estimates. VF Corp traded up 27% following the results while Carter's was down 14.1%.
Read our full analysis of VF Corp’s results here and Carter’s results here.
Investors in the apparel, accessories and luxury goods segment have had steady hands going into earnings, with share prices up 1.4% on average over the last month. Kontoor Brands is down 5.4% during the same time and is heading into earnings with an average analyst price target of $84.43 (compared to the current share price of $77.06).
When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we’ve found one, a low-priced stock that is gushing free cash flow AND buying back shares. Click here to claim your Special Free Report on a fallen angel growth story that is already recovering from a setback.
