Does that 16% after hours decline in Deckers leave you itching to make a move?
Fast Money Trader Jon Najarian thinks it should. With shares down so sharply after earnings, he thinks it due for a bounce on Friday.
Investors went running for the exits after Deckers reported lower-than-expected quarterly results and cut its full-year profit forecast due to rising product costs.
Also the company said the warm winter had dented demand for the company’s signature UGG brand boots.
Looking at the numbers, first-quarter profit fell to $7.9 million, or 20 cents per share, from $19.2 million, or 49 cents per share, last year.
Analysts had expected the company to earn 25 cents per share on revenue of $246.5 million, according to Thomson Reuters I/B/E/S.
And although the results may warrant a decline, Najarian thinks the decline has been excessive.
Despite results, “Deckers deserves to be at least a $60 stock,” he says. “At $56, I just don’t understand why anyone wouldn’t want to own it.”
But he adds it's a short-term trade. "I'll probably get out by lunchtime, Friday."