What's Going On With Birkenstock Stock After Earnings?
Portfolio Pulse from Erica Kollmann
Birkenstock Holding Plc (NYSE:BIRK) reported Q4 earnings with adjusted EPS of 14 cents, surpassing estimates by 75%, and sales of $407.67 million, exceeding estimates by 34.41%. The company provided FY 2024 guidance with expected revenue of $1.89 to $1.91 billion but anticipates adjusted EBITDA margin headwinds. Telsey Advisory Group maintained an Outperform rating and a $56 price target. Despite positive earnings, BIRK shares traded lower by 9.2% post-earnings.
January 18, 2024 | 4:51 pm
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NEGATIVE IMPACT
Birkenstock reported strong Q4 earnings and sales, beating estimates, and provided optimistic FY 2024 guidance. However, shares dropped 9.2% possibly due to concerns over EBITDA margin headwinds.
The drop in Birkenstock's stock price despite surpassing earnings expectations suggests that investors may be concerned about the anticipated EBITDA margin headwinds and the costs associated with the ramp-up and under-absorption in Pasewalk. The market's reaction to the earnings report and guidance indicates a negative short-term sentiment.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100