Oppenheimer analyst Anna Andreeva is weighing in on Fossil (NASDAQ:FOSL), following to company’s fourth-quarter results, posting sales of $1.07 billion that were just shy of consensus target of $1.12 billion, and adjusted earnings per share of $3 missed the forecasted mark of $3.07.
The analyst rates FOSL a Perform with an $85 price target, which implies a downside of 14% from current levels.
Andreeva wrote, “With 4Q14 sales miss (mostly on North America wholesale down 10%, department stores down “modestly”), 2014 marks the first time since ’09 that FOSL missed its annual sales guidance; after 4+ strong years, watch category is slowing–watches globally declined 1% for holiday. While ’15 EPS guidance for earnings down 16-24% y/y arguably embeds some “one time” expenses (forex headwind/restructuring charges), operating margins are coming down to pre-watch cycle levels (12-13%) as FOSL invests in SG&A and top line slows. With stock down 13% after hours, valuation inexpensive at 14-15x ’15 est.; however, margin profile becoming more murky.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Anna Andreeva has a total average return of 8.8% and a 64.2% success rate. Andreeva is ranked #631 out of 3476 analysts.