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PVH Crafts New 52-Week High - Analyst Blog
6/18/2013 10:30:00 AM
Gathering momentum from the better-than-expected first-quarter fiscal 2013 bottom-line results, shares of PVH Corporation ( PVH ) surged to attain a new 52-week high of $126.20 yesterday, before closing at $125.19, up 1.6% from the previous day's session. This Zacks Rank #3 (Hold) stock has generated a year-to-date return of approximately 12%.
Based on the current price, this designer, marketer and retailer of apparel, furnishings and accessories is 1.8% below the Zacks Consensus average analyst price target of $127.46. The company currently trades at a forward P/E of 17.78x, a 2.7% premium to the peer group average of 17.32x. Additionally, the company's long-term estimated EPS growth rate is 13.8%, significantly higher than the peer group average.
Looking at the company's earnings surprise history, PVH Corporation has outperformed the Zacks Consensus Estimate in the last 10 quarters by an average of 10.1%, including a positive surprise of 39.4% in the recently concluded quarter.
PVH Corporation came out with the results on Jun 12, wherein quarterly earnings of $1.91 per share surpassed the Zacks Consensus Estimate of $1.37, and surged 43.6% from the year-ago quarter. The upside was primarily driven by strong revenue growth resulting from the acquisition of The Warnaco Group, Inc. and improved margins.
During the quarter, total revenue of the company jumped 33.8% to $1,910.2 million compared with $1,427.4 million in the prior-year quarter. Management hinted that strong performance across Calvin Klein, Tommy Hilfiger and Heritage Brands remain the growth drivers. PVH Corporation expects the momentum to continue in the second quarter as well.
However, given the impressive results, the guidance seems somewhat conservative, as the company maintains its outlook.
PVH Corp. continues to expect fiscal 2013 total revenue to be $8.2 billion, and reiterated earnings of $7.00 per share. For the second quarter, total revenue is projected to come in at $1.9 billion with earnings of approximately $1.35 per share. The current Zacks Consensus Estimate for the second quarter and fiscal 2013 remains in line with the company's forecast.
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