NEW YORK (TheStreet) -- Kate Spade & Co. (KATE) shares are rallying 1.76% to $19.91 on Monday afternoon as analysts anticipate the New York-based apparel and accessories designer to post a year-over-year growth for fourth quarter 2015.
For the recent quarter, scheduled to be released on Tuesday before the market open, Wall Street is looking for 32 cents a share on revenue of $441.64 million compared to last year's fourth quarter figures of 24 cents a share on revenue of $398.57 million.
Cowen analysts are bullish on Kate Spade after rival Coach (COH) released robust fiscal 2016 second quarter earnings at the end of January. Profit came in at 68 cents a share, beating estimates by a penny despite the rough holiday season for many retailers.
Year-over-year, sales went up by 4% to $1.27 billion but fell short of expectations of $1.28 billion.
"We think stabilization of at Coach could be a positive read-through to Kate Spade," Cowen analysts said in a note, according to Barron's.
Additionally Michael Kors (KORS), another competitor of Kate Spade, saw its shares soar after seeing positive third quarter fiscal 2016 earnings, reported early February. Earnings of $1.59 a share on revenue of $1.4 billion, topped expectations of $1.46 a share on revenue of $1.35 billion.
Separately, TheStreet Ratings currently has a "Hold" rating on the stock with a letter grade of C.
The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth and notable return on equity. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and a generally disappointing performance in the stock itself.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: KATE