Abercrombie & Fitch Co. (NYSE:ANF) Earnings Preview: What to Expect

• Wall Street anticipates ANF's EPS to be $2.37 with projected revenues of approximately $1.18 billion for the third-quarter fiscal 2024.
• The Zacks Consensus Estimate forecasts revenues of $1.2 billion, an 11.8% increase from the previous year, and a consensus EPS of $2.32, reflecting a 26.8% rise from last year's $1.83 per share.
• ANF has consistently delivered an average earnings surprise of 28% over the last four quarters, suggesting a strong possibility of another earnings beat.

Abercrombie & Fitch Co. (NYSE:ANF) is a well-known American retailer specializing in casual wear. The company operates under several brands, including Abercrombie & Fitch, Abercrombie Kids, and Hollister Co. It competes with other retail giants like American Eagle Outfitters and Gap Inc. ANF is set to release its third-quarter fiscal 2024 earnings on November 26, 2024.

Wall Street anticipates ANF's earnings per share (EPS) to be $2.37, with projected revenues of approximately $1.18 billion. The Zacks Consensus Estimate closely aligns with these figures, forecasting revenues of $1.2 billion, an 11.8% increase from the previous year. The consensus EPS is $2.32, reflecting a 26.8% rise from last year's $1.83 per share.

In the previous quarter, ANF exceeded earnings expectations by 16.8%, and over the last four quarters, it has consistently delivered an average earnings surprise of 28%. This trend suggests a strong possibility of another earnings beat, as highlighted by Zacks Investment Research. Such performance is often driven by strong demand for its products and improved profit margins.

The company's financial metrics provide further insight into its performance. ANF has a price-to-earnings (P/E) ratio of 15.53, indicating how the market values its earnings. Its price-to-sales ratio is 1.66, showing investor willingness to pay per dollar of sales. The enterprise value to sales ratio is 1.70, reflecting the company's total valuation relative to its sales.

ANF's financial health is also evident in its low debt-to-equity ratio of 0.17, suggesting conservative debt usage. The current ratio of 1.44 indicates the company's ability to cover short-term liabilities with short-term assets. These metrics, combined with an earnings yield of 6.44%, highlight ANF's strong financial position ahead of its earnings release.