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

Deckers Outdoor Corporation (NYSE:DECK) investors will be delighted, with the company turning in some strong numbers with its latest results. The company beat forecasts, with revenue of US$1.3b, some 9.0% above estimates, and statutory earnings per share (EPS) coming in at US$1.59, 28% ahead of expectations. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for Deckers Outdoor

Taking into account the latest results, the most recent consensus for Deckers Outdoor from 22 analysts is for revenues of US$4.90b in 2025. If met, it would imply an okay 5.2% increase on its revenue over the past 12 months. Statutory earnings per share are expected to dip 4.0% to US$5.51 in the same period. In the lead-up to this report, the analysts had been modelling revenues of US$4.82b and earnings per share (EPS) of US$5.34 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The consensus price target rose 5.3% to US$189, suggesting that higher earnings estimates flow through to the stock's valuation as well. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Deckers Outdoor, with the most bullish analyst valuing it at US$232 and the most bearish at US$145 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that Deckers Outdoor's revenue growth is expected to slow, with the forecast 11% annualised growth rate until the end of 2025 being well below the historical 17% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 6.0% annually. Even after the forecast slowdown in growth, it seems obvious that Deckers Outdoor is also expected to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Deckers Outdoor's earnings potential next year. 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. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that in mind, we wouldn't be too quick to come to a conclusion on Deckers Outdoor. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Deckers Outdoor going out to 2027, and you can see them free on our platform here..

Plus, you should also learn about the 1 warning sign we've spotted with Deckers Outdoor .

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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.