The strength of the Swiss franc compared weighed on profit, but sales momentum remains strong, analysts say.
On Holding (ONON) shares soared 16% in premarket trading when the high-end sneaker maker posted better-than-expected results and boosted its guidance on booming direct-to-consumer (DTC) sales.
On Holding (ONON) came out with a quarterly loss of $0.11 per share versus the Zacks Consensus Estimate of $0.24. This compares to earnings of $0.16 per share a year ago.
Swiss sportswear company On beat Wall Street's revenue expectations. The sneaker company, credited with taking market share from Nike, grew sales 32% in its second quarter and raised its full-year revenue guidance.
On Holding AG has outperformed peers, but its sky-high valuation offers no further upside for investors. Despite strong revenue growth, expanding margins, and a robust balance sheet, future growth faces headwinds from market saturation and weak consumer sentiment. Margin expansion potential appears limited as ON approaches a ceiling in direct-to-consumer sales mix and faces increased competition.
The latest trading day saw On Holding (ONON) settling at $45.16, representing a -3.52% change from its previous close.
On Holding (ONON) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
In the most recent trading session, On Holding (ONON) closed at $48.58, indicating a -4.14% shift from the previous trading day.
Zacks.com users have recently been watching On Holding (ONON) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.
In the latest trading session, On Holding (ONON) closed at $50.76, marking a +1.62% move from the previous day.
Swiss footwear name On Holding (ONON) is down 3.2% this afternoon to trade at $49.94, as the equity continues its volatile week on the charts. Since mid-June, all breakout attempts by ONON have been capped at $55, pressuring the stock to a now 8.5% year-to-date deficit.
The average of price targets set by Wall Street analysts indicates a potential upside of 25.2% in On Holding (ONON). While the effectiveness of this highly sought-after metric is questionable, the positive trend in earnings estimate revisions might translate into an upside in the stock.