Deckers Outdoor Corporation Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

Deckers Outdoor Corporation (NYSE:DECK) defied analyst predictions to release its quarterly results, which were ahead of market expectations. It was overall a positive result, with revenues beating expectations by 5.4% to hit US$1.8b. Deckers Outdoor reported statutory earnings per share (EPS) US$3.00, which was a notable 15% above what the analysts had forecast. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for Deckers Outdoor

Taking into account the latest results, the consensus forecast from Deckers Outdoor's 24 analysts is for revenues of US$5.49b in 2026. This reflects a decent 12% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to rise 6.1% to US$6.58. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$5.47b and earnings per share (EPS) of US$6.42 in 2026. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The consensus price target was unchanged at US$219, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Deckers Outdoor analyst has a price target of US$284 per share, while the most pessimistic values it at US$115. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Deckers Outdoor's past performance and to peers in the same industry. We would highlight that Deckers Outdoor's revenue growth is expected to slow, with the forecast 9.1% annualised growth rate until the end of 2026 being well below the historical 17% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 5.8% per year. So it's pretty clear that, while Deckers Outdoor's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Deckers Outdoor following these results. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at US$219, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Deckers Outdoor analysts - going out to 2027, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for Deckers Outdoor that you need to take into consideration.

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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.