PVH Corporation (PVH) stock has bounced around quite a bit this year but has managed to grow from a January opening of $113.3 to a current price of $130.75. PVH is an American clothing company which owns brands including Tommy Hilfiger, Calvin Klein, Van Heusen, IZOD, Arrow and G.H. Strong reported sales growth in September for the Tommy Hilfiger and Calvin Klein brands have analysts eyeing even higher targets this quarter. PVH is expected to report earnings for FQ3'14 on Monday, December 9.
The information below is derived from data submitted to the Estimize platform by a set of Buy Side and Independent analyst contributors.
The current Wall Street consensus expectation is for PVH to report $2.25 EPS and $2.220B revenue while the current Estimize consensus from 5 Buy Side and Independent contributing analysts is $2.27 EPS and $2.225B revenue. Over the past four quarters for which there is sufficient data Estimize was closer to forecasting the reported EPS three times and more accurate in forecasting revenue three times. The Estimize consensus is more accurate than Wall Street 69.5% of the time because it represents unbiased market expectations. By tapping into a wider distribution of contributors including hedge fund analysts, asset management firm analysts, industry experts and students Estimize is better able to capture the true market outlook. The magnitude of the difference between the Wall Street and Estimize consensus numbers often identifies opportunities to take advantage of expectations that may not have been priced into the market. In this case, we're seeing a smaller differential between the Estimize and Wall Street numbers compared to previous quarters.
Over the past four months the Wall Street consensus trend for EPS has fallen from $2.37 to $2.25 while Wall Street revenue expectations have also decreased from $2.240B to $2.220B. The Estimize EPS consensus has both started and ended at $2.27 while the revenue consensus has dropped from $2.231B to $2.225B.
The distribution of estimates published by analysts on Estimize range from $2.26 to $2.30 EPS and $2.214B to $2.238B revenues. We're seeing about an average distribution of estimates this quarter for PVH compared to previous quarters. The size of the distribution of estimates relative to previous quarters often signals whether or not the market is confident that it has priced in the expected earnings already. A wider distribution signals the potential for greater volatility post earnings, a smaller vice versa.
The analyst with the highest estimate confidence rating this quarter is 1nvestor who projects $2.26 EPS and $2.222B revenue. 1nvestor is ranked 5th overall among 3322 contributing analysts. Estimize confidence ratings are calculated through algorithms developed by our deep quantitative research which looks at correlations between analyst track records and tendencies as they relate to future accuracy.
Given that PVH has beaten Wall Street expectations for EPS eight times in a row and that the Estimize consensus which is higher this quarter than Wall Street has been more accurate three out of four times, it seems that PVH is poised to beat Wall Street expectations for earnings again on Monday.