Yahoo Finance Oxford Industries, Inc. Just Missed EPS By 7.3%: Here's What Analysts Think Will Happen Next
Oxford Industries, Inc. (NYSE:OXM) shareholders are probably feeling a little disappointed, since its shares fell 3.3% to US$99.42 in the week after its latest first-quarter results. Revenues of US$398m were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at US$2.42, missing estimates by 7.3%. 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.
Check out our latest analysis for Oxford Industries
Following the latest results, Oxford Industries' five analysts are now forecasting revenues of US$1.61b in 2025. This would be a modest 3.9% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to surge 227% to US$8.46. Before this earnings report, the analysts had been forecasting revenues of US$1.64b and earnings per share (EPS) of US$9.40 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.
The consensus price target held steady at US$106, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Oxford Industries analyst has a price target of US$120 per share, while the most pessimistic values it at US$92.00. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's pretty clear that there is an expectation that Oxford Industries' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 5.2% growth on an annualised basis. This is compared to a historical growth rate of 11% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 6.3% annually. Factoring in the forecast slowdown in growth, it seems obvious that Oxford Industries is also expected to grow slower than other industry participants.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Oxford Industries. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Oxford Industries' revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$106, with the latest estimates not enough to have an impact on their price targets.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Oxford Industries going out to 2027, and you can see them free on our platform here.
We don't want to rain on the parade too much, but we did also find 4 warning signs for Oxford Industries that you need to be mindful of.
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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.
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