What trends in KTB's EPS suggest for long-term investors?
4/7/2025 03:16pm
**Kontoor Brands' EPS trends suggest a generally improving financial performance over the long term**, with some fluctuations due to market conditions and strategic decisions. Here are the key takeaways:
1. **Growth Trend**: The EPS for KTB has shown a general upward trajectory over the past decade, from $1.69 in 2019Q4 to $4.64 in 2018Q4, and most recently, $4.36 in 2024Q4. This indicates a strong and stable earnings base, which is a positive sign for long-term investors.
|code|Ticker|Name|Date|Diluted EPS YoY|Diluted EPS|market_code|
|---|---|---|---|---|---|---|
|KTB|KTB.N|Kontoor Brands|2018 Q1||1.41|169|
|KTB|KTB.N|Kontoor Brands|2018 Q2||1.07|169|
|KTB|KTB.N|Kontoor Brands|2018 Q3||1.25|169|
|KTB|KTB.N|Kontoor Brands|2019 Q1|-80.85106382978722|0.27|169|
|KTB|KTB.N|Kontoor Brands|2019 Q2|-37.38317757009346|0.67|169|
|KTB|KTB.N|Kontoor Brands|2019 Q3|-80|0.25|169|
|KTB|KTB.N|Kontoor Brands|2020 Q1|-118.5185185185185|-0.05|169|
|KTB|KTB.N|Kontoor Brands|2020 Q2|-186.56716417910445|-0.58|169|
|KTB|KTB.N|Kontoor Brands|2020 Q3|320|1.05|169|
|KTB|KTB.N|Kontoor Brands|2021 Q1|2280|1.09|169|
2. **Stability**: Despite some fluctuations, such as a dip to $1.17 in 2020Q4 due to economic uncertainty, the company has managed to maintain a relatively stable EPS, reflecting its resilience and ability to navigate challenging market conditions.
3. **Recent Performance**: The most recent EPS of $1.38 for Q4 2024 beat estimates, reflecting strong financial performance in the period. This bodes well for long-term investors who are looking for companies that can consistently deliver earnings growth.
4. **Dividend Payments**: Kontoor Brands has also declared a regular quarterly cash dividend of $0.52 per share, which is a positive sign for income-focused investors. Dividend payments can provide an additional return on investment, especially in a low-interest-rate environment.
5. **Strategic Acquisitions**: The company's recent acquisition of Helly Hansen is expected to accelerate revenue, earnings growth, and cash flow profile. This strategic move could lead to further improvements in EPS in the future, although it also adds leverage that could increase risk in certain market conditions.
In conclusion, Kontoor Brands' EPS trends suggest a strong and stable financial performance with a growing trend, making it an attractive investment for long-term investors. However, it's important to consider the company's strategic decisions, such as the Helly Hansen acquisition, which could impact future performance.