Crispr Therapeutics shares tumble after significant earnings miss
On Thursday, Telsey Advisory Group adjusted its price target for Steven Madden (NASDAQ:SHOO) shares, lowering it to $38 from the previous $44, while keeping a Market Perform rating on the stock. The adjustment comes as the stock has declined nearly 20% over the past six months, according to InvestingPro data. Telsey’s analysis highlighted a mixed performance for the footwear and accessories retailer in the fiscal year 2024 (FY24), noting that increased promotions and a greater reliance on private label products pressured gross margins to 41.04%. This was despite stronger sales and improved expense management.
The firm’s attention then shifted to the outlook for the fiscal year 2025 (FY25), particularly in light of moderated consensus expectations ahead of the company’s earnings release. Steven Madden maintains a strong financial position with more cash than debt and a healthy current ratio of 2.16x, as revealed by InvestingPro analysis. The company’s revenue guidance for FY25 was notably above prior consensus estimates, largely due to the inclusion of the upcoming Kurt Geiger acquisition. However, excluding this acquisition, which is expected to be finalized in the second quarter of 2025, year-over-year revenue growth is projected to be in the low single digits, slightly below the prior consensus of a 3.7% increase.
Despite the anticipated $0.10 earnings per share (EPS) accretion from the Kurt Geiger deal, Steven Madden’s EPS forecast for FY25 fell short of consensus estimates. The expected 14%-18% decline in EPS is mainly due to the potential re-implementation of trade tariffs on U.S. imports by the new administration. Telsey also acknowledged Steven Madden’s progress in international markets, apparel and accessories, direct-to-consumer (DTC) segments, and the resurgence of its U.S. wholesale business over the past year.
Nevertheless, the firm expressed concern over the company’s profitability outlook amid a challenging and uncertain macroeconomic environment. As a result, Telsey maintained its Market Perform rating and set the new price target based on a multiple of 14.3 times its two-year forward EPS estimate of $2.65, aligning with the stock’s recent trading multiple of 14.4 times. According to InvestingPro analysis, the stock appears undervalued at current levels, with additional ProTips and comprehensive valuation metrics available to subscribers through the platform’s detailed Pro Research Report.
In other recent news, Steven Madden Ltd reported its fourth-quarter 2024 earnings, which exceeded analysts’ expectations with an earnings per share (EPS) of $0.55, slightly above the forecast of $0.54. The company’s revenue also surpassed projections, reaching $582.3 million compared to the anticipated $550.64 million. Despite these positive results, Jefferies analyst Corey Tarlowe revised the price target for Steven Madden shares, lowering it to $36.00 from $46.00, while maintaining a Hold rating due to concerns over gross margin pressure and tariff exposure. The acquisition of Kurt Geiger, a British footwear and accessories retailer, is expected to enhance Steven Madden’s earnings per share, contributing to double-digit percentage increases in future sales. However, excluding the acquisition’s impact, sales growth is projected to be in the low single-digit range. Steven Madden’s full-year earnings per share guidance fell significantly below Wall Street’s expectations, reflecting challenges such as tariffs. The company forecasts a 17-19% revenue increase for 2025, with diluted EPS expected between $2.30 and $2.40, while analysts continue to monitor the company’s strategic moves and the broader retail environment.
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