Today’s news: Abercrombie & Fitch (ANF) reports strong fourth quarter; moves from Strong Buy to Hold.
Abercrombie & Fitch (ANF – yield 3.7%) reported fourth quarter non-GAAP EPS of $1.35 this morning (January year end), above all analysts’ estimates. Revenue of $1.16 billion exceeded the consensus estimate of $1.13 billion. Same-store sales rose 3% vs. the expected 1.47%. Management guided Wall Street higher on revenue estimates for the current fiscal year.
The price chart has recently turned bullish, surpassing five-month resistance in late January, then edging higher in February, and jumping 17% in early trading today. There’s price resistance at 28-29.
I’m moving ANF from Strong Buy to Hold. I need to assess the new 2019 earnings projections in the coming days before deciding how to proceed. (I have no reason to believe that the numbers will be lackluster – I’m simply being cautious.) Traders should be prepared to sell following this week’s run-up. Everybody else should hold for potential future capital gains. Hold.