Abercrombie & Fitch Co. (ANF) is set to report third-quarter earnings results before the opening bell on Tuesday, November 25, and Wall Street has some pretty specific expectations for how things went.
Analysts are looking for the New Albany, Ohio-based retailer to post earnings of $2.16 per share, which would actually be a step back from the $2.50 per share the company delivered in the same quarter last year. Revenue expectations sit at $1.28 billion for the quarter, compared to $1.21 billion a year ago.
The company's last earnings report in August showed some strength, with Abercrombie beating expectations on both earnings per share and sales for the second quarter. But Monday's trading session wasn't kind to the stock, which fell 6.1% to close at $65.61.
What Wall Street's Top Analysts Are Saying
The analyst community has been busy adjusting their forecasts and price targets heading into this earnings print. Here's what the most accurate analysts covering Abercrombie have been thinking:
Dana Telsey from Telsey Advisory Group maintains an Outperform rating with a $125 price target as of November 18. That's the most bullish view of the bunch, and it comes from an analyst with a 61% accuracy rate.
Paul Lejuez at Citigroup takes a more cautious stance with a Neutral rating, cutting his price target from $105 down to $79 on November 4. His accuracy rate clocks in at 64%.
JP Morgan's Matthew Boss also sits in the Neutral camp, trimming his target from $103 to $92 on October 27. Boss has a 66% accuracy rate on his calls.
Raymond James analyst Rick Patel shows more optimism with an Outperform rating, raising his price target from $90 to $99 back in May. Notably, Patel has the highest accuracy rate of this group at 75%.
Adrienne Yih from Barclays maintains an Equal-Weight rating while bumping her price target from $71 to $84, also in late May. She carries a 66% accuracy rate.
What's interesting here is the spread. Even among Wall Street's most accurate Abercrombie watchers, price targets range from $79 to $125—and the stock closed Monday at $65.61, below even the most conservative of these targets. Tuesday's earnings report should tell us whether the recent selloff was prescient or overdone.
