Abercrombie & Fitch Analysts Boost Their Forecasts Following Strong Earnings
Portfolio Pulse from Lisa Levin
Abercrombie & Fitch Co (NYSE:ANF) reported higher than expected adjusted EPS of $1.83 for Q3 FY23, beating the consensus estimate of $1.18. However, sales of $1.06 billion fell short of the $1.34 billion estimate. Comparable sales increased by 16%, and the company updated its FY23 net sales growth forecast to 12%-14%, up from 10%. Despite the strong earnings, ANF shares dropped 2.2% to $72.37. Telsey Advisory Group and Morgan Stanley raised their price targets for ANF following the earnings report.

November 22, 2023 | 4:33 pm
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Abercrombie & Fitch reported strong Q3 earnings with an EPS beat, but missed revenue estimates. The company raised its FY23 sales growth forecast. Analysts increased price targets, yet shares fell 2.2%.
The mixed earnings report with a strong EPS beat but a revenue miss typically leads to uncertain short-term stock movement. The raised sales outlook is positive, but the stock price drop indicates market skepticism. Analysts raising price targets could signal a positive outlook, but it may not immediately counteract the negative sentiment from the revenue miss.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100