NEXT (LON:NXT) Announces Quarterly Earnings Results

NEXT (LON:NXT) issued its quarterly earnings data on Thursday. The company reported GBX 364.30 earnings per share for the quarter, Digital Look Earnings reports. NEXT had a net margin of 12.87% and a return on equity of 52.86%.

NEXT Price Performance

Shares of NXT traded up GBX 175 during mid-day trading on Thursday, reaching £147.35. The company had a trading volume of 1,208,744 shares, compared to its average volume of 4,533,730. The company has a market capitalization of £16.82 billion, a price-to-earnings ratio of 19.77, a P/E/G ratio of 5.66 and a beta of 1.04. The company has a debt-to-equity ratio of 108.79, a quick ratio of 1.07 and a current ratio of 1.76. The company’s 50 day simple moving average is £151.15 and its 200 day simple moving average is £139.51. NEXT has a 1-year low of £112 and a 1-year high of £161.75.

Wall Street Analysts Forecast Growth

NXT has been the topic of several recent research reports. Peel Hunt reaffirmed a “hold” rating and set a £139 target price on shares of NEXT in a report on Wednesday, August 5th. Deutsche Bank Aktiengesellschaft reaffirmed a “hold” rating and issued a £140 price objective on shares of NEXT in a report on Thursday, August 6th. JPMorgan Chase & Co. upped their target price on NEXT from £130.30 to £140.40 and gave the company a “neutral” rating in a research report on Thursday, August 6th. Berenberg Bank increased their target price on NEXT from £180 to £187 and gave the stock a “buy” rating in a report on Thursday, August 6th. Finally, Citigroup raised their price target on NEXT from £132 to £155 and gave the stock a “neutral” rating in a research report on Thursday, August 6th. Three research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of “Hold” and a consensus price target of £153.55.

Key Stories Impacting NEXT

Here are the key news stories impacting NEXT this week:

• Positive Sentiment: Quarterly profitability reported: NEXT delivered earnings per share of 364.30 pence for the quarter, alongside a 52.86% return on equity and a 12.87% net margin. The strong profitability metrics may reassure investors about the retailer’s earnings power.
• Positive Sentiment: Buy rating and £175 target reaffirmed: Shore Capital maintained its “buy” recommendation and £175 price target, implying approximately 19% upside from the reported £146.81 reference price. The endorsement provides a positive catalyst and reinforces confidence in NEXT’s outlook. Shore Capital reaffirms NEXT buy rating and price target
• Neutral Sentiment: Valuation and trading context: NEXT has a market capitalization of about £16.76 billion and trades at roughly 19.7 times earnings. Its shares are close to the upper end of their 52-week range, which could limit near-term gains unless earnings growth continues to justify the valuation.

Insider Buying and Selling

In related news, insider Jeni Mundy bought 160 shares of the firm’s stock in a transaction on Tuesday, August 11th. The shares were purchased at an average price of £155.45 per share, with a total value of £24,872. Also, insider Jonathan Blanchard sold 18,012 shares of the company’s stock in a transaction on Thursday, June 25th. The stock was sold at an average price of £148.02, for a total transaction of £2,666,136.24. 1.47% of the stock is owned by corporate insiders.

NEXT Company Profile

Founded as a tailoring business in Leeds in 1864 by Joseph Hepworth and Son, today, the company offers clothing, footwear, accessories, beauty and home products to our UK and International customers.

NEXT has over 500 stores in the United Kingdom and Eire, and over 180 franchise branches across Europe, Asia and the Middle East. The company’s main divisions are NEXT Online, NEXT Retail and NEXT Finance. We also launched Total Platform, an online, distribution, tech and logistics solution, in 2020.