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Columbia Sportswear’s 2Q17 Results: Beats on Earnings, Revenue

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Updated

Snapshot of this series

Portland-based Columbia Sportswear (COLM) reported results for the second quarter of 2017 on Thursday, July 27, 2017.

Just as the first quarter of 2017, the company cruised ahead of Wall Street’s earnings and revenue estimates. Total sales rose 2.6% YoY (year-over-year) to $399.0 million, beating the consensus by $4.0 million.

Although the company reported an operating loss of $0.17 per share during the quarter, it was better than Wall Street’s expectations of a $0.20 loss per share.

COLM stock rose 7.5%% to $62 on June 28, 2017, the next trading day.

In this four-part series, we’ll get a view of the company’s performance during the quarter, management’s guidance, its year-to date stock performance, its valuations, and Wall Street analysts’ views.

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Valuations update and stock recommendation

COLM is currently trading at a one-year forward price-to-earnings ratio of 22.0x compared to 46.0x for Under Armour (UAA), 26.0x for Lululemon Athletica (LULU), and 24.0x for Nike (NKE).

The average 12-month price target of the 19 analysts covering COLM is $63.24, indicating an upside of ~2.0% over the next one year.

About Columbia Sportswear

Founded in 1938, Columbia Sportswear is a global active lifestyle apparel, footwear, and accessories company. It has a presence in more than 90 countries.

However, it’s a smaller player in the sportswear space. It has a market capitalization of $4.3 billion and trailing 12-month (or TTM) sales of $2.4 billion. In comparison, sportswear giant Nike has TTM sales of $34.3 billion and a market cap of ~$97.0 billion. UAA is double the size of COLM, with TTM sales of $4.9 billion and a market cap of $8.0 billion.

ETF investors seeking to add exposure to COLM can consider the First Trust Mid Cap Value AlphaDEX ETF (FNK), which invests 0.44% of its portfolio in COLM.

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