Deckers (Nasdaq: DECK) Shares Plunged: What You Need to Know

Northern, WI 2/24/12 (StreetBeat) -- Shares of footwear specialist Deckers Outdoor (Nasdaq: DECK) sank 11% on Friday after its outlook easily missed Wall Street estimates.

So what: Deckers' fourth-quarter profit surged 40%, but a disappointing current-quarter outlook -- EPS of just $0.25 versus the consensus of $0.63 -- is forcing analysts to cut their price targets. While UGG sales remain strong, rising sheepskin prices are triggering concerns over Deckers' long-term profitability.

Now what: Looking further ahead, management sees 2012 EPS of $5.07, also well below Wall Street's view of $5.82. "We continue to pursue all available opportunities to further mitigate the impact of cost pressures and based on our initial visibility, we expect to experience relief beginning in 2013," said CEO Angel Martinez. For investors with enough patience to wait it out, today's pullback might be providing an attractive entry point.

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Department store J.C. Penney reported that fourth-quarter net income grew 35.5% to $271 million, or $1.13 a share, from $200 million, or 84 cents a share, a year earlier. Adjusted earnings per share from continuing operations were $1.23. Net sales increased about 3% to $5.7 billion from $5.55 billion. On average, analysts were calling for earnings of $1.08 a share on revenue of $5.7 billion. Shares of J.C. Penney were rising 1.6% to $37.15 in premarket trading Friday.

Aerospace giant Boeing was awarded a $35 billion contract by the Pentagon for an aerial refueling tanker jet. Shares of Boeing were rising 4.9% to $74.25 in premarket trading Friday.

American International Group reported net income of $11.2 billion and earnings per share of $16.60 for the fourth quarter of 2010. Shares of AIG were up 0.7% to $41.72 in premarket trading.

TV network CBS and Warner Bros. Television have decided to end production for the rest of the season on TV comedy Two and a Half Men because of comments star Charlie Sheen made about the show's producer. CBS was up 0.3% to $22.10.

Footwear company Deckers Outdoor reported heavy demand for its UGG brand boots. The stock was jumping 7.7% to $96.75 in premarket trading.

San Francisco-based cloud computing company Salesforce.com crushed the consensus view for its fourth-quarter results. Shares of the company were higher in premarket trading, surging 9.4% to $147.

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