Analyst Review Alert: Abercrombie & Fitch Co. (NYSE:ANF)

Analysts are weighing in on how Abercrombie & Fitch Co. (NYSE:ANF), might perform in the near term. Wall Street analysts have a much less favorable assessment of the stock, with a mean rating of 2.8. The stock is rated as buy by 3 analysts, with 4 outperform and 19 hold rating. The rating score is on a scale of 1 to 5 where 1 stands for strong buy and 5 stands for strong sell.

For the current quarter, the 28.00 analysts offering adjusted EPS forecast have a consensus estimate of $-0.18 a share, which would compare with $0.12 in the same quarter last year. They have a high estimate of $0.09 and a low estimate of $-0.47. Revenue for the period is expected to total nearly $783.98M from $817.76M the year-ago period.

For the full year, 27.00 Wall Street analysts forecast this company would deliver earnings of 0.87 per share, with a high estimate of $1.19 and a low estimate of $0.40. It had reported earnings per share of $1.12 in the corresponding quarter of the previous year. Revenue for the period is expected to total nearly $3.45B versus 3.52B in the preceding year.

The analysts project the company to maintain annual growth of around 16.50% percent over the next five years as compared to an average growth rate of 12.11% percent expected for its competitors in the same industry.

Among the 26 analysts Data provided by Thomson/First Call tracks, the 12-month average price target for ANF is $23.72 but some analysts are projecting the price to go as high as $45.00. If the optimistic analysts are correct, that represents a 141 percent upside potential from the recent closing price of $18.64. Some sell-side analysts, particularly the bearish ones, have called for $12.00 price targets on shares of Abercrombie & Fitch Co. (NYSE:ANF).

In the last reported results, the company reported earnings of $0.12 per share, while analysts were calling for share earnings of $-0.04. It was an earnings surprise of 400.00%percent. In the matter of earnings surprises, the term Cockroach Effect is often implied. Cockroach Effect is a market theory that suggests that when a company reveals bad news to the public, there may be many more related negative events that have yet to be revealed. In the case of earnings surprises, if a company is suggesting a negative earnings surprise it means there are more to come.

Abercrombie & Fitch Co., through its subsidiaries, operates as a specialty retailer of casual apparel. The company sells knit and woven shirts, graphic T-shirts, fleece, jeans and woven pants, shorts, sweaters, and outerwear; personal care products; and accessories for men, women, and kids under the Abercrombie & Fitch, abercrombie kids, and Hollister brand names. As of March 2, 2016, it operated through 754 stores in the United States; and 178 stores in Canada, Europe, Asia, and the Middle East. The company sells its products through its stores and direct-to-consumer sales. Abercrombie & Fitch Co. was founded in 1892 and is headquartered in New Albany, Ohio.