Coach (COH) Stock: Falling On Earnings Report

Coach Inc (NYSE: COH) is having an incredibly rough start in the pre-market hours this morning, and for good reason. The company posted earnings for the fourth quarter, and while earnings per share came in ahead of expectations, revenue was a miss and 2018 guidance proved to be lighter than expected. Of course, this led to fear among investors, sending the stock downward and prompting our partners at Trade Ideas to alert us to the losses. At the moment (7:33), COH is trading at $44.95 per share after a loss of $2.97 per share or 6.20% thus far today.

COH Falls On Revenue And Guidance

As mentioned above, Coach released its earnings report for the fourth fiscal quarter this morning, and while earnings came in ahead of expectations, revenue and guidance proved to be a miss. Here’s what we saw from the report…

  • Earnings Per Share – In terms of earnings per share, COH did relatively well in the fourth quarter. During the quarter, analysts expected that the company would generate earnings in the amount of $0.49 per share. However, the company actually reported earnings in the amount of $0.50 per share.
  • Revenue – While earnings just about hit the nail on the head, COH missed the mark when it came to revenue. During the quarter, the company reported a total of $1.13 billion in revenue, missing expectations of $1.15 billion.
  • Guidance – Unfortunately, guidance proved to be another source of concern. Coach said that in the fiscal 2018 year, it is expecting to generate earnings in the range between $2.35 per share and $2.40 per share. However, Wall Street is expecting the company to generate $2.49 per share on revenue in the amount of $6.04 billion.

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What We’ll Be Watching For Ahead

Moving forward, the CNA Finance team will continue to keep a close eye on COH. In particular, we’re interested in following the company to see if they find a way to improve expectations for the year ahead to come in line with analyst projections. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!

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