Kontoor Brands Inc Down 10.56% To $56.76 After Earnings Miss

Kontoor Brands Inc (KTB) missed earnings projections on 2/28/2024 for Q4 2023.

Kontoor Brands Inc's earnings came in at an EPS of $1.35 per share, 1% lower than estimates for an EPS of $1.36 per share. The firm's earnings are up 53% since reporting $0.88 per share in the same period a year ago. Remember, earnings reported were on an adjusted basis, so they may not be comparable to prior reports and/or analyst estimates.

Consensus analyst estimates were at $725.4 million. The Consumer Cyclical company missed on those expectations for its fourth quarter with revenue of $669.8 million, a negative revenue surprise of $55.6 million (8%). The firm managed negative 8% growth year-over-year due to Kontoor Brands Inc reporting quarterly revenue of $731.6 million in its year-ago quarter. Kontoor Brands Inc achieved a higher earnings growth rate than revenue, signaling that the business has improved its profit margin.

The stock is down 10.56% to $56.76 after the report.

The firm's lower revenue growth to earnings signals that the firm has been able to reduce costs and improve its profit margin overall.

The average recommendation from Wall Street analysts was a Strong Buy which may get revised based on this new data.

Trading in the five days leading up to the report earned Kontoor Brands Inc a Bullish Sentiment Rank from InvestorsObserver.

Kontoor Brands Inc has performed a little above average during the past few months. Before the report, Kontoor Brands Inc received a Long-Term Technical Rank by InvestorsObserver of 69, putting it in the top half of stocks. The firm was recently trading at a 52-week high of $64.49 on February 23, 2024 and set a 52-week low on July 10, 2023 at $37.1.

Kontoor Brands Inc is a lifestyle apparel company. It is engaged in designing, manufacturing, sourcing, marketing, and distribution of its portfolio of brands, including Wrangler and Lee. It manufactures its products in owned and leased facilities and distributes the products through both brick and mortar and e-commerce retailers. It generates the majority of its revenue from the Wrangler segment. The company's geographical segments are the United States and International, of which most of its revenue comes from the United States.