Yahoo Finance Oxford Industries, Inc. Just Missed EPS By 60%: Here's What Analysts Think Will Happen Next
Last week, you might have seen that Oxford Industries, Inc. (NYSE:OXM) released its full-year result to the market. The early response was not positive, with shares down 7.0% to US$105 in the past week. Statutory earnings per share fell badly short of expectations, coming in at US$3.82, some 60% below analyst forecasts, although revenues were okay, approximately in line with analyst estimates at US$1.6b. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Check out our latest analysis for Oxford Industries
After the latest results, the six analysts covering Oxford Industries are now predicting revenues of US$1.64b in 2025. If met, this would reflect a satisfactory 4.2% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to surge 142% to US$9.40. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$1.62b and earnings per share (EPS) of US$10.35 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.
The consensus price target held steady at US$106, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Oxford Industries, with the most bullish analyst valuing it at US$120 and the most bearish at US$94.00 per share. This is a very narrow spread of estimates, implying either that Oxford Industries is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Oxford Industries' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 4.2% growth on an annualised basis. This is compared to a historical growth rate of 9.6% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 6.0% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Oxford Industries.
The Bottom Line
The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at US$106, with the latest estimates not enough to have an impact on their price targets.
With that in mind, we wouldn't be too quick to come to a conclusion on Oxford Industries. Long-term earnings power is much more important than next year's profits. We have forecasts for Oxford Industries going out to 2027, and you can see them free on our platform here.
And what about risks? Every company has them, and we've spotted 3 warning signs for Oxford Industries you should know about.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
