The Buckle Earnings Report Makes Its Comeback Case

The Buckle Earnings Report Makes Its Comeback Case

Clothing retailer, and mall fixture, The Buckle (NYSE:BKE) delivered its earnings report earlier today and the numbers proved a solid comeback case in play for the company. The Buckle's earnings report brought consensus-beating numbers for earnings and revenue, and the market responded accordingly, giving the company a powerful 7.9% surge in premarket trading. Those gains have held into trading this morning and have actually added further gains so far. While analysts are much more cautious, there's a dearth of recent analysis that may suggest a better potential afoot than some expect.

Wins All-Around At The Buckle

The Buckle stock news looked sharper than it has in some time. Not only did the company deliver wins on earnings, but it also delivered for revenue and a brighter outlook going forward. The company posted $1.16 per share in earnings, which handily beat consensus estimates of $0.43, as well as the Zacks estimate of $0.53. It also trounced the year-ago figures, where the company posted a loss of $0.24 per share. This is also the third time in the last year that The Buckle has delivered beats on earnings expectations.

Revenue was a much closer story, however; the company posted revenue of $299.13 million, which beat the Zacks estimate by just 0.01%. The company did manage to post better than double the revenue seen this time last year, when it brought in just $115.41 million. Additionally, this is the second time in the last year that the company has beaten revenue estimates.

The Buckle has been on an upward tear in recent months; since the year started, the company's stock gained about 36.5%. Given that the S&P 500 has only gained about 10.7% in the same time, it's a significant win for The Buckle so far. The company credits being allowed to reopen stores with much of the recovery, at last report.

What Do Financial Analysts Think About BKE Stock?

While the Buckle stock news has been looking bright so far, one point that's remaining surprisingly clouded is what financial analysts think about the stock. There's been very little movement out of financial analysts, based on our latest research. The company currently has a consensus rating of “sell,” and has held such for over a year now.

However, that consensus rating of “sell” is currently based on one financial analyst's perspective. The “sell” rating is currently held by CFRA, who downgraded from “hold” to “sell” back on May 26, 2020. No other opinion has emerged since.

CFRA's BKE stock price target, which also represents the high, low and average for the company, is currently holding at $11 per share. Given that The Buckle stock currently trades at $41 per share, CFRA's assessment represents significant downside risk, but since it hasn't been modified in a year, the risk is more limited.

There are other assessments, however, available to point out; back on April 29, Zacks added The Buckle to its “strong buy” list, along with four other firms, including executive search and consulting firm Heidrick & Struggles International Inc. (NASDAQ:HSII) and discrete semiconductor manufacturer Vishay Intertechnology Inc. (NYSE:VSH). Four days ago, The Buckle CEO Dennis H. Nelson sold 15,000 shares of The Buckle stock valued at an average price of $45.62 per share. This leaves him with a total of 274,500 shares, which suggests Nelson isn't abandoning the company.

Despite this, several institutional buyers increased their stakes in The Buckle in recent weeks, with Sprucegrove Investment Management adding 13.6% to its stake in the fourth quarter, Dimensional Fund Advisors adding 4%, and Bank of New York Mellon Corp. adding an extra 1.6%.

Companies in This Article:

CompanyCurrent PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
The Buckle (BKE)$40.16-4.2%3.29%9.92N/AN/A
Vishay Intertechnology (VSH)$21.41-4.2%1.77%18.62Hold$23.33
Heidrick & Struggles International (HSII)$43.34-3.4%1.38%-26.11Buy$42.67