What's Going On With Birkenstock Stock After Earnings?

Birkenstock Holding Plc BIRK shares are trading lower Thursday after the company reported fourth-quarter financial results and issued fiscal year 2024 guidance.

What To Know:

Birkenstock reported quarterly adjusted earnings of 14 cents per share which beat the analyst consensus estimate of 8 cents by 75%. The company reported quarterly sales of $407.67 million, beating the analyst consensus estimate of $303.31 million by 34.41%.

Birkenstock said that it anticipates 2024 constant currency revenue of $1.89 billion to $1.91 billion, though the company expects a modest headwind to adjusted EBITDA margins due to planned ramp-up costs and an initial under-absorption in Pasewalk.

Telsey Advisory Group maintained Birkenstock with an Outperform and a $56 price target after the earnings release. Telsey Advisory Group expects Birkenstock to grow its addressable market and drive average selling prices in 2024.

The analyst note also highlighted the company’s category expansion into styles which typically generate higher average selling prices and its direct-to-consumer opportunities which can help deliver a stronger profit margin.

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Is BIRK a Good Buy: An investor can make a few decisions when deciding whether a stock is a good buy. In addition to valuation metrics and price action which you can find on Benzinga's quote pages – like Birkenstock Holding‘s page for example – there are factors like whether or not a company pays a dividend or buys a large portion of its stock each quarter.

These are known as capital allocation programs. Birkenstock Holding does not pay a dividend, but obviously has a few ways it can return value to shareholders. Feel free to search Benzinga's dividend calendar for the next company that is due to pay a dividend and determine what kind of yield you can earn for holding a share of the company.

For example, if you're looking to earn an annualized return of 12.31%, you'll need to buy a share of Dynex Cap by Jan. 22, 2024. Once done, you can expect to receive a nominal payout of $0.13 on Feb. 1, 2024.

Buyback programs are obviously different and highly variable. A company can approve a buyback program and purchase shares as it sees fit over the course of time in which the buyback was authorized. Looking through the latest news on Birkenstock Holding will often yield whether or not the company has approved a buyback program recently. Buyback programs usually serve as a support for share prices, serving as a backstop for demand.

BIRK Price Action: According to Benzinga Pro, Birkenstock shares are down 9.2% at $45.38 at the time of publication.

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