Analysts’ reaction to Columbia’s first-quarter results
Several analysts raised their price targets for Columbia Sportswear (COLM) after the company reported strong first-quarter earnings results and raised its 2019 outlook. Columbia Sportswear declared its results after the markets closed on April 25. The company’s stock rose 2.4% in after-market trading on April 25 but fell 3.1% on April 26.
After the results, the following analysts increased COLM’s price target:
- Canaccord Genuity: $107 from $104
- D.A. Davidson: $129 from $116
- Cowen and Company: $123 from $120
- B. Riley: $107 from $96
- Wedbush: $118 from $113
- Guggenheim: $125 from $120
- Stifel: $128 from $120
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Columbia Sportswear’s adjusted EPS rose 39% year-over-year to $1.07 driven by 7.8% sales growth, enhanced margins, and higher net interest income. The company’s first-quarter EPS crushed analysts’ estimate of $0.83. Its earnings also gained from its buyout of its Chinese joint venture, which became a wholly owned subsidiary in January 2019.
Following its performance in the first quarter, Columbia Sportswear raised its EPS outlook for 2019 to the $4.40–$4.55 range. The company’s previously issued outlook range was $4.30–$4.45.
On April 26, Columbia Sportswear stock was up 20.4% on a year-to-date basis compared to the 19.1% rise in Nike (NKE) and the 36.1% rise in Skechers (SKX).
After the price target revisions mentioned above, the 12-month average price target for Columbia Sportswear stock is $116.77. Analysts’ average price target reflects a potential upside of 15% compared to the stock’s closing price of $101.25 on April 26.
On April 26, nine out of 15 analysts considered Columbia Sportswear a “buy,” while the remaining six had given it “hold” recommendations.